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Patagonia’s founders of nearly 50 years, the Chouinard family, have transferred ownership of the company to two new entities: Patagonia Purpose Trust and Holdfast Collective.
In line with the company’s mission of sustainability, every dollar Patagonia makes will either be reinvested back into the brand or distributed as dividends toward protecting the environment and planet.
Yvon Chouinard, Patagonia founder, former owner, and current board member said “it’s been a half-century since we began our experiment in responsible business. If we have any hope of a thriving planet 50 years from now, it demands all of us doing all we can with the resources we have.”
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“As the business leader I never wanted to be, I am doing my part,” Chouinard added. “Instead of extracting value from nature and transforming it into wealth, we are using the wealth Patagonia creates to protect the source. We’re making Earth our only shareholder. I am dead serious about saving this planet.”
What This Means
The Patagonia Purpose Trust now owns all the voting stock of the company (2% of the total stock). The Holdfast Collective owns all the nonvoting stock (98% of the total stock). These moves create a more permanent legal structure that aligns with the brand’s values and ensure that funds go toward protecting nature and biodiversity, as well as supporting the community and fighting the environmental crisis.
The company expects that it will pay out an annual dividend of $100 million, depending on the health of the business, to the Holdcast Collective to fight climate change.
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