Who Owns Patagonia?

Chouinard, the rock climber, turned into a billionaire through the success of Patagonia; at his death in 2022, he reorganized Patagonia into two non-profit organizations. The Patagonia Purpose Trust, holding 100% of the voting stocks, defines the company’s strategic direction. And the Holdfast Collective, a non-profit, holds 100% of non-voting stocks, thus getting the brands’ dividends to re-invest into environmental causes.

As shared by Patagonia, Chouinard wrote a letter to explain his rationale:

As Chouinard explained, he never set to become a businessman:

“I never wanted to be a businessman. I started as a craftsman, making climbing gear for my friends and myself, then got into apparel. As we began to witness the extent of global warming and ecological destruction, and our own contribution to it, Patagonia committed to using our company to change the way business was done.”

Further explaining that, after evaluating all the possible options, of which none worked, Patagonia’s founder decided to organize the company in this manner:

“Here’s how it works: 100% of the company’s voting stock transfers to the Patagonia Purpose Trust, created to protect the company’s values; and 100% of the nonvoting stock had been given to the Holdfast Collective, a nonprofit dedicated to fighting the environmental crisis and defending nature. The funding will come from Patagonia: Each year, the money we make after reinvesting in the business will be distributed as a dividend to help fight the crisis.”

Thus, Patagonia will be owned by two non-profit organizations: the Patagonia Purpose Trust and the Holdfast Collective.

The Patagonia Purpose Trust will hold 100% of the voting stocks. Thus, the organization will decide the brand’s strategic direction.

On the other hand, the Holdfast Collective focused on environmental causes, will take 100% of non-voting stocks. This means it will take the dividends generated by the brand to re-invest it into environmental causes.

Thus, on the one hand, you get a non-profit (Patagonia Purpose Trust) with the sole scope of keeping Patagonia’s brand on track to its long-term mission.

And on the other hand, you get a non-profit (Holdfast Collective) with the sole scope of re-investing Patagonia’s profits toward environmental causes.