After Kering, LVMH is leaving the Stella McCartney brand, too. The fashion designer, daughter of Beatles singer Paul, has bought back the minority stake held by LVMH in the brand she founded. The French giant had bought a 49 per cent stake in 2019. At the time, the French giant led by Bernard Arnault had commented: “We are convinced of the great long-term potential of her house”. This was not quite the case.
From Kering to LVMH to end up alone
From 2001 to 2018 Stella McCartney was a 50-50 partner with Kering. In 2019, the brand attracted Kering’s rival LVMH, which acquired a 49 per cent stake. A long-awaited collaboration began. The French luxury giant described the transaction as “the beginning of a beautiful story together”. But the “beautiful story” soon ran into obstacles. In 2020, the pandemic forced the brand into a cost-cutting cure. But this was not enough because, at least since then, the financial statements filed in the UK have always ended up in the red. For the time being, after 2020, there is no news of a profitable financial statements for the brand. Not to mention Mylo and Mirum, the British designer’s two favourite materials. Production has stopped for both.
Choice or decision from above?
And today, the best partnership McCartney could have had in the fashion world also came to an end. The one with LVMH “after more than five years of fruitful collaboration”, the group writes from Paris. From the French capital, the operation is (obviously) being passed off as Stella McCartney wanting her brand to become independent again. But who knows if the Arnault family hasn’t decided to close the taps on its financing, given the brand’s continuous financial failures. In other words, a stop to investments for a brand that, in five years, has always been in the red and, according to Arnault’s vision, cannot prosper much in the immediate future.
She remains an expert in sustainability
One door, however, remains open as Stella McCartney will continue to advise LVMH boss Bernard Arnault and the group’s executive team on sustainability issues in her role as global ambassador for sustainability. The classic sop?
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