Patagonia: Billionaire boss of fashion retailer gives company away

The billionaire founder of the outdoor fashion retailer Patagonia says he has given away his company to a charitable trust.

Yvon Chouinard said that under a new ownership structure, any profit not reinvested in running the business would go to fighting climate change.

This will amount to around $100m (£87m) a year, he claimed, depending on the health of the company.

Patagonia sells hiking and other outdoor clothing in over 10 countries.

Founded in 1973, its estimated revenue was $1.5bn this year, while Mr Chouinard’s net worth is thought to be $1.2bn.

“Despite its immensity, the Earth’s resources are not infinite, and it’s clear we’ve exceeded its limits,” the entrepreneur said of his decision to give up ownership.

“Instead of extracting value from nature and transforming it into wealth, we are using the wealth Patagonia creates to protect the source.”

The Californian firm was already donating 1% of its annual profits to grassroots activists and committed to sustainable practices. But in an open letter to customers,  the apparently reluctant businessman said he wanted to do more.

He said he had initially considered selling Patagonia and donating the money to charity, or taking the company public.

But he said both options would have meant giving up control of the business. “Even public companies with good intentions are under too much pressure to create short-term gain at the expense of long-term vitality and responsibility,” he said.