Patagonia gave itself away. Here is how that works.
Yvon Chouinard started out forging climbing pitons in the 1950s and sold them from his car. His company, Chouinard Equipment, became a leading maker of climbing gear. In the early 1970s he began selling clothing, and the Patagonia name followed in 1973.
The company became known for durable outdoor clothing, fleece jackets and environmental campaigns. It started giving 1 percent of sales to environmental groups in the 1980s and helped found 1% for the Planet in 2002.
The 2022 decision
In September 2022 Chouinard announced that his family had given away the company. All of Patagonia’s voting stock went to the Patagonia Purpose Trust, which is meant to protect the company’s values. All of its nonvoting stock went to the Holdfast Collective, a nonprofit that uses the company’s profits to fight climate change and protect land.
The company said profits not reinvested in the business would go to Holdfast as dividends, estimated at around $100 million a year at the time.
How it is run
Patagonia continues as a private, for-profit company with its own management. The move drew wide praise and also questions about how such structures are taxed.
The company still runs its Worn Wear program, which repairs and resells used gear, as part of its push against overconsumption.
