Off-White Was Just Bought out by Farfetch
As its parent company was bought out, Off-White’s future hangs in the balance as its new owner tries to create “brands of the future.”
We’ve come to expect grand visions from luxury brands. Off-White has taken the world by storm with theirs: a fashion industry dominated by elevated streetwear. But Farfetch, a luxury fashion e-commerce platform, decided it wants its vision to be realized, and it’s paying to make it happen. In a move to create “brands of the future”, Farfetch bought 100% of the shares of New Guards Group, Off-White’s parent company.
New Guards Group’s portfolio consists of luxury brands like Palm Angels, Marcelo Heron Preston and Kirin Peggy Gou, alongside Off-White. With its recent purchase, Farfetch now owns the business that licenses these brands. Farfetch claims this move will set itself and its roster of brands up for success. It claims that its combination of tastemaking, direct-to-consumer distribution and superior manufacturing will solidify its stake in the future of fashion. Whether that’s going to happen is unknown. Despite New Guards Group’s profitability and higher revenues last quarter, analysts say Farfetch won’t see profitability until 2021. Investors seem to smell the danger in this deal, too, with Farfetch’s stock tanking this morning.
As for Off-White? In the long-term, it’s up to how Farfetch and New Guards want to play their cards. But for now, the company claims it’s business as usual. Fear not, Virgil Abloh’s Off-White shouldn’t look any different next season.
Off-White submitted a statement to V Magazine clarifying its ownership structure,
“In connection with the news that Farfetch is acquiring New Guards Group, OFF-WHITE would like to clarify our ownership structure. OFF-WHITE LLC, which is controlled by Virgil Abloh, owns the trademark of our brand, and NGG is our exclusive licensee pursuant to a multi-year agreement. The New Guards Group transaction with Farfetch will not affect Off-White™ day to day operations as the New Guards Group team will become part of Farfetch. We look forward to our ongoing work together.”