Yvon Chouinard, the founder of the outdoor clothing brand Patagonia, has broken up the multi-billion dollar company and turned it over to a foundation and nonprofit. That’s what the billionaire said in an interview with The New York Times. All profits from the company, which has hundreds of stores in dozens of countries around the world, must be put into the fight against climate change.
“Hopefully this influences a new form of capitalism that doesn’t end with a few rich people and a few poor people,” Chouinard said. “We are going to give away the maximum amount of money to people who are actively working to save this planet.” Patagonia was founded in 1973 and in the following years established itself as a clothing brand that was committed to the environment, partly through the production of sustainable clothing and donations to environmental organizations.
Patagonia remains a private for-profit company, according to the new model. A small percentage of the company’s stock has been put into a foundation to see to it that 83-year-old Chouinard’s wishes are fulfilled and all profits given away. These profits will go to a newly formed nonprofit, which owns 98 percent of Patagonia’s stock. That money should help initiatives against climate change and protect land all over the world.
Chouinard calls giving away his business “the ideal solution” for his family. “I feel a great relief that I have put my life in order.”