The French multinational luxury group LVMH (Moët Hennessy Louis Vuitton) will buy a 60 percent share in its menswear designer Mr. Virgil Abloh’s streetwear label ‘Off-White’ and expand his role within the spirits-to-jewelry conglomerate.
According to the official statement from LVMH, Mr. Abloh will retain a 40 percent stake and remain as creative director of Off-White, a streetwear label which the US designer and DJ founded in 2013. The financial terms of the deal were not disclosed.
Mr. Abloh was hired to create menswear collections for Louis Vuitton, LVMH’s biggest revenue driver, in March 2018 as the group sought to step into some new labels and attract younger customers.
After completion of the deal Mr. Abloh will continue in that role while also working with the group “to launch new brands and partner with existing ones in a variety of sectors beyond the realm of fashion,” the statement said.
Earlier, Mr. Abloh had collaborated with LVMH-owned Rimowa on a line of see-through suitcases and introduced popular partnerships with brands such as Nike and Ikea.
Commenting on the acquisition, the high-profile designer in fashion stated that LVMH would help him develop Off-White into a “truly multi-line luxury brand” while he hoped his expanded role at the French giant would also help to strengthen diversity in the industry.
“We’re not trying to emulate a model that already exists. It’s more like what Bernard Arnault did when he bought Dior and decided to create a federation of luxury brands,” Mr. Michael Burke, the chief executive of Louis Vuitton, said.
The Off-White brand is known for its luxury urban style, featuring hoodies that start at $570, at a time when some high-end brands are adopting streetwear looks to attract younger shoppers.
The transaction is subject to regulatory approval and is expected to be completed within the next 60 days.