Patagonia becomes a beacon of hope for the fashion industry being considered a force of good as their billionaire founder has given away his company to a charitable trust.
Founder Yvon Chouinard has always made conscious efforts to operate Patagonia responsibly, but now he’s taken the ultimate step by giving away his entire company (worth £2.6 billion) – in an effort to fight the climate crisis.
Patagonia have gained a large following from their sustainability efforts, such as offering reasonably priced repairs, guaranteeing clothes for life, its famous advert titled “Don’t buy this jacket” and now the statement on their website reads: “Earth is now our only shareholder.”
Mr Chouinard and his family have handed 98% of their shares to a newly-found non-profit organisation from the US, named the Holdfast Collective.
It is estimated that profits to be donated to the Holdfast Collective will amount to roughly £87 million a year – comprising all the profits from Patagonia that aren’t invested back into the company.
Celebrate Patagonia’s sustainable values by browsing our collections of Patagonia apparel right here.
As a rock climbing fanatic, Mr Chouinard started out by making metal climbing spikes for himself and his friends, before moving into the fashion industry where in 1973, he founded the hugely successful sportswear brand – Patagonia.
He claims he “never wanted to be a businessman” but Mr Chouinard’s Patagonia sales from 2021 were worth £1.3 billion while his net worth is thought to be at £1 billion.
As of now, the US charity the Holdfast Collective, now owns all of the non-voting stock – 98% of the company. The Patagonia Purpose Trust, led by the family, remains the company’s controlling shareholder but with only 2% of its total stock.
Founded and based in Ventura, California – Patagonia will continue to donate 1% of all its sales every year to grassroot activists. While the Holdfast Collective will use all of its funds to protect nature and biodiversity, support thriving communities and fight the environmental crisis.
For the past 50 years, Patagonia has been an innovator in the industry, with the company first donating 10% of its profits in 1986, to grassroots groups working to save and restore habitats.
Patagonia’s unconventional marketing campaigns such as the 2011 “Don’t buy this jacket” campaign was an effort to convince people to buy only what they need. Campaigns such as this didn’t tarnish the labels sales, and critics argued bold campaigns like this encouraged more spending.
As an organisation, Patagonia has never been afraid to speak its mind or to hurt anyone’s feelings. Ahead of the 2020 election in the US, Patagonia released a pair of shorts with the writing “Vote the assholes out” featured on the clothing.
With the climate crisis becoming ever more urgent, Patagonia and Chouinard have demonstrated a radical and inspiring method of doing business. Let’s see if any other companies follow suit as this may be a huge step for the fashion industry, and beyond.
For more up to date news plus the top discounts and sales available – visit The Hoxton Trend.
