LVMH sold away Off-White

LVMH sold Off-White LLC yesterday, the company that owns the Off-White brand, to Bluestar Alliance LLC. This decision comes at a time when LVMH is shifting its focus toward ultra-prestigious luxury and highlights the growing difficulties in maintaining the high positioning of a brand that blends streetwear and high fashion. Founded in 2012 by the late Virgil Abloh, Off-White quickly became one of the most influential brands in contemporary fashion: Abloh's ability to fuse street culture with high fashion created a new paradigm for luxury, culturally relevant and commercially successful, redefining the concept of irony and self-reference in fashion, and altering the public's perception of traditional luxury signifiers. LVMH's decision to sell Off-White marks the end of an era. Although financial details of the transaction were not disclosed, the timing of the sale is particularly significant, as it occurred on what would have been Virgil Abloh's birthday. A choice of date seen by many as deliberate, intended to convey a message of mistrust in streetwear. The decision also comes at a time of complexity regarding the brand's ownership and future, including a "shared ownership" situation with New Guards Group, which held the brand's license until 2026, when the brand could have fully entered the LVMH portfolio.

The sale of Off-White reflects a broader trend within LVMH: simplifying its portfolio and focusing on core ultra-exclusive luxury brands. Managing a brand like Off-White, rooted in streetwear and based on constant reinvention, required significant creative and financial commitment. After Abloh's untimely death in 2021, maintaining his legacy and evolving the brand became increasingly difficult. While Off-White was profitable, maintaining its momentum in a saturated market, coupled with the challenges of repositioning it, posed a significant challenge. The brand's identity was so closely tied to Abloh's personal vision that continuing without him was always complex. Moreover, streetwear, in general, has seen a decline in relevance, making a long-term commitment to the brand less appealing for LVMH. By selling it to Bluestar Alliance, LVMH passed its management to a company with extensive experience managing a wide portfolio of premium brands such as Hurley, Scotch & Soda, and Elie Tahari. For the New York-based firm, the acquisition of Off-White represents an opportunity to introduce new strategic investments and grow the brand.

The new owners expressed excitement about working with the brand. Joey Gabbay, CEO of Bluestar Alliance, said: «Virgil was a creative pioneer who had a profound impact on the fashion industry and the global creative community. Acquiring Off-White represents a unique opportunity for Bluestar Alliance to honor and build on Virgil Abloh's lasting legacy». This signals that the intersection of luxury and streetwear is a territory that Bluestar intends to explore even further, expanding the brand's global presence in markets where it has not yet fully capitalized, but especially targeting the increasingly hot middle-market segment, in which the company specializes. With Bluestar Alliance now at the helm, the future of Off-White will inevitably change, but it is hoped that Abloh's pioneering spirit will continue to inspire the brand's evolution.