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Report: ModCloth Lays Off 70 Employees

Just last year, the company was raking in over $100 million in revenue.

ModCloth, the 12-year-old e-commerce company that has built a loyal fan following with its quirky, vintage-inspired aesthetic, has laid off 70 employees -- about 15 percent of its staff -- across its three offices in Los Angeles, San Francisco and Pittsburgh.

TechCrunch reports that the firing round, which took place Tuesday, is a move to consolidate the team without impacting the company's overall direction. It's not the first time ModCloth has undergone a series of layoffs: Back in March 2011, ModCloth slimmed down its designer relations team and moved its operations to L.A., which had been divided between Pittsburgh and L.A. 

Representatives for the company did not immediately respond to request for comment.

The layoffs don't necessarily mean that the company is in hot water, though. Almost exactly a year ago, CEO Eric Koger said that ModCloth's annual sales had broken well past $100 million and were on track to increase by another 40 percent. The pace of ModCloth's growth owes in part to the backing of venture capital firms like Accel Partners, Norwest Venture Partners and First Round, which have collectively poured over $60 million into the business. 

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Koger told Bloomberg last July, "We're going to deliver liquidity to [our investors] eventually, but we don't have a specific timeline yet for an IPO or an acquisition." 

Could ModCloth be restructuring its team as it prepares for a move in either direction? Possibly. We'll be watching to see.