LVMH has divested its streetwear fashion brand Off-White to Bluestar Alliance, a New York-based brand management firm. This move is noteworthy because, although LVMH—the French luxury conglomerate formed by the merger of Louis Vuitton and Moët Hennessy—regularly buys and sells brands, Off-White’s acquisition marked a pivotal moment in its appeal to younger consumers.
The catalyst for this shift was Virgil Abloh. The American fashion designer, known for his collaborations with Kanye West as an artistic director, founded Off-White in 2013. At the height of streetwear’s popularity, Abloh’s high-end designs catapulted Off-White to global prominence. Meanwhile, LVMH was grappling with its own challenges; the luxury giant was finding it difficult to connect with younger fashion enthusiasts who were less interested in traditional formalwear.
In 2018, Louis Vuitton appointed Abloh as their artistic director, making him the first Black person to lead their menswear division. LVMH also acquired a minority stake in Off-White. This strategic move paid off; Abloh’s streetwear influence revitalized Louis Vuitton’s relevance, prompting LVMH to increase its stake in Off-White to 60% in 2021. The remaining 40% was held by British e-commerce firm Farfetch, with Abloh retaining trademark rights.
However, Abloh’s untimely death in late 2021 from a rare cancer he had kept private left a void. While Louis Vuitton continued to thrive under new creative leadership, Off-White struggled without its founder. The brand’s appeal waned as luxury goods demand slowed and streetwear trends shifted. New CEO Cristiano Fagnani, appointed in 2023, aimed to “reset” Off-White, acknowledging that the brand had lost touch with its core audience.
Adding to Off-White’s woes, Farfetch, which owned 40% of the brand, faced its own financial challenges. These factors likely influenced LVMH’s decision to sell its stake in Off-White to Bluestar Alliance for an undisclosed sum. Bluestar, known for acquiring distressed brands and licensing them at lower price points, may signal the end of Off-White’s cultural dominance.
