Nordstrom will pay $350 million to buy Trunk Club, the Chicago-based men’s online clothing and personal styling company, multiple sources familiar with the terms of the deal tell Re/code.
Some Trunk Club employees can also reap bonuses if they meet certain performance goals, one of these people said.
A Nordstrom spokeswoman declined to comment on the acquisition price and said more details will be released in the company’s August 14 earnings release.
As I wrote a few weeks ago when we broke news of the talks, the deal gives Nordstrom a potentially powerful digital extension to its existing personal shopper service. Trunk Club customers consult with a stylist and then receive a package at home full of various types of clothing chosen by their personal shopper. Customers keep only the clothing they want to purchase and send the rest back for free.
The sale is a nice first exit for CEO Brian Spaly, who is also a founder of online men’s shop Bonobos. Trunk Club is profitable and expected to generate slightly more than $100 million in revenue this year, according to information he provided the New York Times.
His company had raised more than $12 million from Greycroft Partners, U.S. Venture Partners, Apex Venture Partners and Anthos Capital.