Yvon Chouinard, founder and owner of Patagonia.
Courtesy of Jeff Johnson and Patagonia
Patagonia founder Yvon Chouinard, his spouse, and two adult children transferred ownership of the apparel manufacturer he started nearly 50 years ago, taking all profits from the company. Dedicated to projects and organizations that protect wild lands and biodiversity and fight the climate crisis.
The company is valued at about $3 billion, according to the company. new york times.
In a letter about the decision, which was posted on Patagonia’s website on Wednesday, Shoinard wrote about “rethinking capitalism”:
“We are doing our best to deal with the environmental crisis, but it is not enough. One option would have been to sell Patagonia and donate all the funds.. But we wondered if the new owners would keep our values or continue to employ a team of employees around the world. I didn’t know what to do.
Another route was to take the company public. What a disaster! Even well-meaning public companies are under pressure to generate short-term profits at the expense of long-term vitality and responsibility.
Honestly, there weren’t any good options available. So we created our own. “
Equity in the private company is now owned by a group of climate-focused trusts and nonprofits called the Patagonia Purpose Trust and Holdfast Collective, respectively. It will be distributed as a dividend to protect the earth. “
The Trust will acquire all voting rights representing 2% of the total and use it to create “a more permanent legal structure to protect Patagonia’s purpose and values”.It is close to family members Supervised by an advisor.
Holdfast Collective owns 98% of Patagonia’s non-voting stock.
Patagonia expects about $100 million in revenue and donations annually, depending on the health of the business. The company currently sells new and used outdoor apparel, gear for outdoor activities such as camping, fishing and mountaineering, and sustainably sourced food and beverages.
As a certified B-Corp and California Benefit Corporation, Patagonia donates 1% of our sales to grassroots activists each year and will continue to do so. There are less than 6,000 companies around the world that have been certified as he. B-Corp BusinessTo be certified, you must meet rigorous environmental, social and governance standards and benchmarks set by B Labs.
Ryan Gellert will continue to serve as Patagonia’s CEO, while the Chouinard family will remain on Patagonia’s board of directors as the apparel company expands its philanthropic endeavors. After informing employees about the move on Wednesday, the company updated its website to say, “Currently, the Earth is our sole shareholder.”
https://www.cnbc.com/2022/09/14/patagonia-founder-donates-entire-company-to-fight-climate-change.html Patagonia Founder Donates Entire Company to Fight Climate Change