LVMH has officially announced the divestiture of Off-White, the esteemed luxury streetwear brand founded by the late visionary Virgil Abloh, to Bluestar Alliance, the owner of Scotch & Soda.
The financial specifics of the transaction remain undisclosed, but the acquisition signifies Bluestar Alliance’s commitment to preserving and expanding Abloh’s innovative legacy within the fashion industry.
Bluestar Alliance’s Expanding Portfolio
Bluestar Alliance, reputable for rescuing Scotch & Soda from bankruptcy in 2023, has solidified its presence in the fashion world with the acquisition of Off-White. The New York-based brand management company’s portfolio already includes notable names such as Hurley, Bebe, and Elie Tahari.
This strategic acquisition enables Bluestar Alliance to enhance its vast network and foster growth, reinforcing its dedication to pioneering new trends in fashion while honouring the indelible mark left by Virgil Abloh.
Joey Gabbay’s Vision for Off-White
Joey Gabbay, co-founder and CEO of Bluestar Alliance, emphasised the unique opportunity this acquisition presents to honour Virgil Abloh’s enduring legacy. He stated, ‘His visionary approach to fashion resonates deeply with our core values.’
Gabbay highlighted that Abloh’s ability to merge street culture with high fashion has created a strong foundation, aligning perfectly with Bluestar Alliance’s vision of fostering innovation and embracing diversity.
Virgil Abloh’s Influence on Fashion
Virgil Abloh founded Off-White in 2012, creating a brand that seamlessly blended streetwear with luxury. His influence extended beyond Off-White when he became the first black artistic director at Louis Vuitton in 2018.
Abloh’s unique vision and creative genius garnered global recognition, making Off-White a symbol of contemporary high fashion. His death in 2021 marked a significant loss for the industry, yet his legacy continues to inspire new generations of designers.
The acquisition of Off-White by Bluestar Alliance is seen as a strategic move to continue fostering the cultural and creative momentum that Abloh ignited.
Financial Implications for LVMH
LVMH, a conglomerate known for its luxury brands including Louis Vuitton, Christian Dior, and Givenchy, recorded €41.7bn (£35.1bn) in revenue for the first half of 2024, reflecting a slight year-on-year decline of 1%.
Despite this minor setback, the sale of Off-White allows LVMH to reallocate resources and investments towards other core areas, ensuring sustained growth and innovation within its diverse portfolio.
Strategic Investments by Bluestar Alliance
The acquisition by Bluestar Alliance is not just a business transaction but also a strategic investment aimed at leveraging their extensive global network. This move will likely introduce new synergies and avenues for growth within the portfolio of brands managed by Bluestar.
Bluestar Alliance’s commitment to innovation and diversity aligns seamlessly with the principles that Virgil Abloh instilled in Off-White. The brand’s future under Bluestar’s stewardship looks promising, with potential expansions and initiatives aimed at revitalising its market presence.
Future of Off-White
With Bluestar Alliance at the helm, Off-White is poised for a new chapter of growth and innovation. The focus will be on maintaining the brand’s distinct identity while exploring new markets and demographics.
Bluestar Alliance’s strategic investments and dedication to honouring Abloh’s legacy will ensure that Off-White continues to be a trailblazer in the fashion industry.
The sale of Off-White to Bluestar Alliance marks a significant milestone, embodying both the end of one era and the beginning of another.
This transition signifies a renewed commitment to Virgil Abloh’s innovative spirit, ensuring that Off-White will continue to thrive and shape the future of fashion under new stewardship.
