LVMH Acquires Majority Stake in Virgil Abloh’s Streetwear Label Off-White
The world's largest luxury conglomerate enters the house that Virgil Abloh built.
The world’s largest luxury conglomerate, LVMH, is seemingly on an acquisition spree lately. After the recent announcement that they’d snapped up a minority stake in Phoebe Philo’s forthcoming namesake venture, LVMH has gone much larger in their scale of purchases by adding Off-White to its portfolio of brands. The French fashion house announced that it is set to acquire a cool 60% stake in Virgil Abloh’s streetwear designer label.
This latest securement has lead to Abloh’s new seat at the power table, as described by The New York Times. In addition to being the artistic director of Louis Vuitton’s menswear, a role that he has had since 2018, he will now work with LVMH to help launch new brands and energise its existing partnerships “beyond the realm of fashion,” according to a press release. He expressed his sensibility towards segments such as wine and spirits and hospitality.
“I’m incredibly excited to work together with LVMH on other possible collaborations – an evolution of the great relationship I have had with LVMH, Bernard Arnault, Michael Burke at Louis Vuitton, and others. I’m also honored to use this partnership to deepen my longstanding commitment to expand opportunities for diverse individuals and foster greater equity and inclusion in the industries we serve. This is an incredible new platform to take the disruption we’ve achieved together to a whole new level” said Abloh.
The designer has already collaborated with sundry, diverse, and rather unexpected brands, such as Nike on a coveted sneaker collection, and with Ikea on a homeware line. These prolific partnerships, which have gained significant amounts of media interest, could be a stepping stone in expanding LVHM’s presence.
The Milan-based New Guards Group will remain an operating partner for Off-White, being responsible for the label’s production, marketing, and distribution. According to a statement, “the transaction through which LVMH is investing in Off-White™️ is subject to regulatory approval and is expected to be completed within the next 60 days.”
While LVMH has been secretive in disclosing the precise terms, it is safe to say that this takeover must’ve cost the world’s second-richest man a pretty penny. Michael Burke, Chairman and Chief Executive Officer of Louis Vuitton, expressed that they’ve paid the ‘right amount’.
“For nearly a decade, we’ve been building Off-White™️ to be a brand designed to empower our generation and challenge the status quo. LVMH brings to the table the additional firepower and scale to accelerate our momentum and evolve Off-White into a truly multi-line luxury brand” said Abloh.
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