In what is seen as a sign of trouble, LVMH has sold its stake in Off-White.
The French luxury goods company, which owns fashion giants such as Louis Vuitton and Dior, sold its majority stake in the streetwear brand to Bluestar Alliance. This move comes three years after LVMH acquired 60% of the company in July 2021, just months before founder Virgil Abloh passed away in November 2021. Abloh retained 40% ownership until his death, with Virgil Abloh Securities exiting Off-White in 2022.
The financial terms were undisclosed, but experts suggest Off-White may be struggling despite having $227.6 million in annual sales as of March 2023. At this time, it seems the brand’s lucrative Nike partnership is also still in place. However, Bluestar Alliance is known for buying distressed companies like Bebe and Hurley. Still, they remain optimistic about continuing Abloh’s cultural relevancy.
LVMH, experiencing a 14% profit decline, had been seeking new leadership for Off-White after Abloh’s passing. The brand has faced instability, especially following Abloh’s passing from a rare cancer and complications surrounding a licensing deal with Italian production company New Guards Group. New Guards itself faced difficulties after its parent company, Farfetch, was acquired by South Korea’s Coupang Inc.
Despite the challenges, LVMH stated Bluestar is “the perfect partner” for Off-White.
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