LVMH strikes deal with controversial luxury rival

Off-White is an Italian luxury streetwear brand founded by the late American designer Virgil Abloh.

Abloh became a household name in the fashion industry thanks to his time as creative director of LVMH’s Italian luxury brand, Louis Vuitton, and later developing his own brand, Off-White.

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With the birth of his innovative fashion brand, Abloh successfully introduced streetwear into the world of luxury fashion like no other, earning the designer a place among the top designers in the fashion world.

His hardworking nature, undeniable style and unique fashion sense earned him the respect and recognition he still holds today.

Bernard Arnault, chairman of LVMH Moet Hennessy Louis Vuitton SE, has left.

Bloomberg/Getty Images

Virgil Abloh: a tragic death that came too soon

While Abloh was rapidly rising to the peak of his career, he sadly passed away on November 28, 2021, at the age of 41, after a two-year battle with a cancer called cardiac angiosarcoma.

Although Abloh died only nine years after founding his clothing brand, the luxury fashion world was not willing to let his young legacy die either.

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To continue its legacy, Off-White appointed a new creative director, but the choice proved uninspiring.

In 2022, former Dazed Magazine editor-in-chief Ib Kamara took over as creative art and image director for Off-White, but his new vision failed to connect with the beloved brand’s target audience.

No matter how hard the luxury world has tried to continue to manage Abloh’s legacy, the brand has not had the same impact without his creative leadership.

The tumultuous brand has moved

Off-White was originally owned by Milan-based New Guards Group, which also had an exclusive licensing agreement, since 2014.

However, this ended after London-based e-commerce company Farfetch acquired the streetwear brand in 2019.

In December of that year, Farfetch was bought by South Korean e-commerce company Coupang.

LVMH has a long history with Abloh, as the company gave him the opportunity to showcase his talent, so in 2021, the same year of his death, the fashion house took a majority stake in the brand by increasing its stake to 60%, with Farfetch. still owns the remaining 40%.

LVMH unloads Off-White by striking a deal with its rival

Approaching the third anniversary of his death, LVMH took the tough decision to cut back on areas of its business after earnings fell short of expectations.

Monday, LVMH (LVMHF) announced that it will sell its stake in Off-White to brand management company Bluestar Alliance.

The Bluestar Alliance portfolio includes renowned brands such as Bebe, Tahari, Hurley, Scotch & Soda and Justice.

The new acquisition would allow Abloh’s legacy to live on through Off-White.

However, this new partnership has some problems, as Off-White is not in the same field as any of the other brands the company already owns.

Bluestar Alliance brands are not in the luxury market; they are lower priced and can be found at most local malls, department stores, and even some discount retailers.

Another worrying detail is that Bluestar Alliance is known for buying unstable brands and licensing them to be sold at a lower price.

This raises the question of whether Off-White will remain in the luxury market or be relegated to a discount label.

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In addition to the already worrying factors surrounding Bluestar Alliance, the company also has a troubled past.

In 2016, Bluestar Alliance was sued by fashion designer Nanette Lepore for an alleged breach of their contract.

The company allegedly fired Lepore from her role as creative director of her namesake brand and authorized the brand to develop defective, low-quality products that were then sold at a discounted price.

Although both sides resolved the dispute privately, Lepore no longer owns her brand and closed her personal design line in March 2020. Currently, Bluestar Alliance still licenses Nanette Lepore.

Details of the deal between LVMH and Bluestar Alliance have not yet been publicly disclosed, but New Guards Group still has a licensing agreement with Off-White until 2026.

Bluestar Alliance did not immediately return TheStreet’s request for comment.

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