Patagonia
Patagonia Purpose Trust and Holdfast Collective · United States
Patagonia is an American outdoor clothing company founded by Yvon Chouinard in 1973 and based in Ventura, California. Since 2022 its voting shares have been held by the Patagonia Purpose Trust and its non-voting shares by the Holdfast Collective, a nonprofit that receives the profits not reinvested in the business. It is the most cited example of purpose-driven ownership in apparel.
| Founded | 1973 |
|---|---|
| Founder | Yvon Chouinard |
| Owner | Patagonia Purpose Trust (voting stock) and Holdfast Collective (non-voting stock), since 2022 |
| Headquarters | Ventura, California, United States |
| Legal form | Benefit corporation |
| Resale programme | Worn Wear (since 2017) |
| Website | patagonia.com |
What is Patagonia?
Patagonia designs outdoor clothing and equipment for climbing, skiing, surfing, fly fishing and trail running, and also runs a food business, Patagonia Provisions. The company is headquartered in Ventura, California, and is organised as a benefit corporation. Its public identity is built around environmental activism as much as product.
History
The company grew out of Chouinard Equipment, the climbing hardware business of Yvon Chouinard. Patagonia was founded in 1973 to sell clothing, and over the following decades it became known for fleece, technical shells and a willingness to take public positions on environmental issues.
In September 2022 Chouinard transferred ownership of the company. According to Patagonia, the Patagonia Purpose Trust holds all voting stock, about 2 per cent of the company, while the Holdfast Collective, a nonprofit, holds all non-voting stock, about 98 per cent. After reinvestment and reserves, profits are paid as a dividend to the Holdfast Collective to address the environmental crisis.
Products and positioning
Patagonia is a premium brand whose products are designed for durability and repair. Core categories include:
- Fleece, insulated jackets and technical shells
- Surf, climbing and ski apparel
- Packs and travel bags
- Clothing for children
Business model and distribution
The company sells through its own stores and website as well as specialist outdoor retailers. In 2019 it said it would focus distribution of co-branded products on companies committed to environmental and social goals. Its Worn Wear programme, created in 2017, offers trade-in and resale of used Patagonia products. The company also continues to donate 1 per cent of sales to grassroots environmental groups, a commitment written into its charter.
Why it matters
Patagonia is the leading reference for brands that want to link ownership, governance and environmental purpose. Its ownership structure, repair and resale programmes and selective distribution policies are widely studied by fashion and outdoor companies looking at circular business models and long-term brand trust.
Frequently asked questions
Who owns Patagonia?
Since 2022 Patagonia's voting stock has been held by the Patagonia Purpose Trust and its non-voting stock by the Holdfast Collective, a nonprofit. Profits not reinvested in the company are paid to the Holdfast Collective to fight the environmental crisis.
Who founded Patagonia?
Patagonia was founded in 1973 by the American climber Yvon Chouinard, who had previously built a climbing equipment business. He transferred ownership of the company in 2022.