The billionaire founder of the fashion retailer Patagonia has given away his company to a charity trust. Yvon Chouinard said that with the new ownership structure, the profit will not be reinvested in the running business and that it will go to fight climate change. The amount will be around $100 billion a year. He also claimed to depend upon the health of the company.
Let us tell you that Patagonia sells hiking and other outdoor clothing in about 10 countries. It was founded in 1973, and the estimated revenue of the company this year is $1.5 billion. On the other hand, the net worth of Mr. Chouinard is $1.2 billion.
He said that “despite its immensity, the earth’s resources are infinite and we have exceeded the limit.” This is the reason behind giving up ownership of the billion-dollar company. He also added that by extracting value from nature and transforming it into wealth, we are using the wealth Patagonia creates and protecting the source.
Let us tell you that California is already donating about 1% of its annual profit to grassroots activists and is also committed to some sustainable practices. And he said that his first step is to initially sell Patagonia and donate the money to charity, or he can go on to make the company public.
FAQ
- How much does the state donate to grassroots activists?
Ans. 1%
- What is the value of Patagonia?
Ans. $100 billion
- What is the net worth of Mr. Chouinard?
Ans. $1,2 billion
