chouinard: Billionaire retailer Yvon Chouinard donates fashion company Patagonia to charity. here’s why

Yvon Chouinard, founder of Patagonia donates his company to charity under a new ownership structure. The billionaire founder explained that under the new system, any profits made will not be reinvested in the business but will be used to fight climate change.

Yvon Chouinard is the founder of outdoor fashion company Patagonia. According to reports, the amount that will go towards fighting climate change will be around $100 billion ($86 billion). This amount may increase or decrease depending on the health and future of the business.

Yvon Chouinard donates Patagonia to fight against climate control.

• Patagonia is a successful fashion brand that sells hiking clothing and other outdoor sports equipment in over ten countries.

• The company was founded in 1973 and estimated revenue was $1.5 billion that year.

• Yvon Chouinard’s net worth is approximately $1.2 billion.

• Prior to this, Patagonia donated 1% of its annual profits to sustainable communities and local activists.

• But recently, in an open letter addressed to the public, Yvon Chouinard said he wanted to do more and work more to support the community.

• He said he initially planned to sell the business and give it all to charity or take the business public. But that would have meant losing control of the business and pushing the pressure elsewhere.

• He said that even public companies have so much pressure.

FAQs

What is Patagonia’s new ownership structure?
• After Yvon Chouinard decided not to sell the business, the Chouinard family, owners of the business, decided to opt for a different alternative.

• The company has been transferred to two separate entities now.

• Chouinard explains that The Patagonia Purpose Trust will remain the majority shareholder but will hold only 2% of the total shares.

•The other 98% of the stock will be under Holdfast Collective, an American charity dedicated to saving the environment. These 98% of the shares will constitute the part without voting rights.

• Chouinard further explained that every year the profit left after reinvesting in the business will go to different organizations fighting against climate control.

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