Off-White X LVMH Major Acquisition

The luxury streetwear giant Off-White, founded by American designer Virgil Abloh just sold 60% of its company to French conglomerate LVMH Möet Hennessy Louis Vuitton SE. The sale doesn’t come as much of a surprise to fans because Abloh is already the creative director for Louis Vuitton. Abloh has already achieved icon status because his Ghananian heritage makes him one of the most prominent African-American designers in the luxury fashion industry. In a feature in The New York Times, Vanessa Friedman pointed out his success this isn’t just a big deal economically but also of major cultural significance as this deal makes Abloh, “the most powerful Black executive at the most powerful luxury goods group in the world.”

The French luxury conglomerate LVMH Möet Hennessy Louis Vuitton SE has survived the economic recession due to COVID-19 much better than other luxury companies due to the brand’s diversified portfolio. While other brands have been scaling back, the company’s stock has rallied 55% in the past year and as of January 2021, they acquired the mega-brand jewelry Tiffany & Co. This newest purchase is estimated to have put the second-richest man in the world, Bernard Arnault, back quite a few million with Off-White’s estimated net worth to be around $170 million USD.

This acquisition is exciting as Mr. Abloh has almost single-handedly transformed streetwear into high fashion. In 2013, Off-White was launched in Milan serving sneakers, hats, oversized jackets, and baggy pants on the runway. Shocking those used only to seeing couture and gowns gracing the runways of Europe it is safe to say that Off-White is now a staple in the fashion world. All of the details of this acquisition have not been released but we do know that Virgil Abloh will remain in his current role at the creative helm of Off-White and maintain a 40% share of his brand.