LVMH sells Off-White stake to Bluestar Alliance
LVMH, the French luxury goods conglomerate, has sold its stake in streetwear brand Off-White to New York-based brand management company Bluestar Alliance. The sale comes three years after the death of Off-White's founder, Virgil Abloh.
Transaction snapshot
Deal value: N/A
Deal multiples: N/A
Deal type: Acquisition
Investors: Bluestar Alliance
The financial terms of the deal were not disclosed. The sale occurs amid a slowdown in the luxury goods market, with LVMH reporting a 14 per cent drop in net profit in July.
Bluestar Alliance, known for acquiring and reviving struggling brands, now owns LVMH's stake in Off-White. The company's portfolio includes other fashion labels such as Bebe, Hurley, and Scotch & Soda.
Joey Gabbay, Bluestar's chief executive, stated that the acquisition would allow for "the continuation of the cultural and creative momentum that Virgil ignited". Bernard Arnault, LVMH's owner, described Bluestar as "the perfect partner to carry that legacy forward".
Off-White has faced challenges since Abloh's death in 2021. The brand reported annual sales of US$227.6 million ($338 million) as of March 2023. Its licensing agreement with Italian luxury production company New Guards Group, owned by Farfetch, added complexity to its operations. Farfetch's recent acquisition by South Korean company Coupang Inc further complicated matters.
LVMH had increased its stake in Off-White before Abloh's death, with plans for him to take on a larger role within the company. Abloh had been designing for Louis Vuitton, LVMH's main revenue driver, since 2018.
The sale of Off-White comes after the brand's return to New York Fashion Week last month under the creative direction of Ibrahim Kamara, who succeeded Abloh in 2022.
