Patagonia, Inc. is an American retailer of outdoor recreation clothing, equipment, and food. It was founded by Yvon Chouinard in 1973 and is based in Ventura, California.[3] Patagonia operates stores in over ten countries,[4][5] and factories in sixteen countries.[6]
History
Yvon Chouinard, an accomplished rock climber,[7] began selling hand-forged mountain climbing gear in 1957 through his company Chouinard Equipment.[8] He worked alone selling his gear until 1965, when he partnered with Tom Frost in order to improve his products and address the growing supply and demand issue he faced.[9]
In 1970, Chouinard obtained rugby shirts from Scotland that he wore while climbing because the collar kept the climbing sling from hurting his neck.[9][10]
Great Pacific Iron Works,[11] Patagonia's first store, opened in 1973 in the former Hobson meat-packing plant at Santa Clara St. in Ventura, near Chouinard's blacksmith shop.[12] In 1981, Patagonia and Chouinard Equipment were incorporated within Great Pacific Iron Works.[13] In 1984, Chouinard changed the name of Great Pacific Iron Works to Lost Arrow Corporation.[14]
Patagonia has expanded its product line to include apparel targeted towards other sports, such as surfing.[15] In addition to clothing, they offer other related products, including camping food.[16] Its sales grew to $750m by 2015.[17] By the late 2010s, branded Patagonia fleece vests became known for their use by financial executives, and in 2019, Patagonia announced that its distribution of branded products would focus on firms committed to environmental, social, and corporate governance initiatives.[18]
In September 2020, Patagonia announced that Rose Marcario would step down as its chief executive officer and be succeeded by Ryan Gellert.[19]
In September 2022, Chouinard transferred ownership of Patagonia (all of its voting stock, about 2% of total stock) to the Patagonia Purpose Trust, a trust overseen by the Chouinard family and advisors. Chouinard's stated goal was for profits to be used to address climate change and protect land.[20][21][22] All nonvoting stock was transferred to Holdfast Collective, a 501(c)(4) organization.[23][24] The move allows Chouinard to avoid taxation on the gift of the nonvoting shares since it was to a nonprofit holding company, while effectively maintaining control of the company via the affiliated trust's ownership of the voting stock. A gift tax of $17 million was assessed on the transfer of the voting stock.[25]
Manufacturing
In 2007 and 2011, internal audits revealed that factories in Patagonia's production supply chain in Taiwan were involved in human trafficking, leading to company efforts to address the labor abuses.[26]
It was found in 2011 that Patagonia used unnatural water repellants to make their outerwear able to repel water effectively. These repellants have been found to be carcinogenic; however, Patagonia continued to use them. Since this was found, Patagonia has changed what they use as water repellants, finding only trace amounts of the carcinogens.[27]
In June 2016, Patagonia released a set of principles for the treatment of animals used to manufacture wool garments, as well as land-use practices and sustainability.[28][29]
In 2017, Patagonia created a trade-in and exchange program called Worn Wear.[30]
Activism
Since 1985, Patagonia has committed 1% of its total sales to environmental groups through One Percent for the Planet, an organization of which Yvon Chouinard was a founding member.[42] It has also used advertising campaigns to draw attention to the environmental impact of fashion, offers repairs on old products, and offers recycling or swapping.[17] In 2016, Patagonia pledged to contribute 100% of sales from Black Friday to environmental organizations, totaling $10 million.[43] In June 2018, the company announced that it would donate the $10 million it received from President Trump's 2017 tax cuts to "groups committed to protecting air, land and water and finding solutions to the climate crisis."[42]
In February 2017, Patagonia led a boycott of the Outdoor Retailer trade show, which traditionally took place in Salt Lake City, Utah, because of the Utah state legislature's introduction of legislation that would transfer federal lands to the state.
Sustainability initiatives
Patagonia is known for making sustainability an important part of its business and brand identity.[53] From the beginning, the company’s goal has been to “use business to inspire and implement solutions to the environmental crisis.”[54] This idea has influenced many of its decisions and helped it become one of the most recognized companies for environmental responsibility in the clothing industry.[55] Over the years, Patagonia, by creating different programs and policies, has protected nature, reduced waste, and improved working conditions.[56]
One of the main company goals is to focus on materials and product design.[57] The company tries to reduce its environmental damage by using more responsible materials.[58]
See also
- Business action on climate change
Further reading
External links
References
- Kenza Bryan, Andrew Edgecliffe-Johnson. Patagonia chair: 'Put that in your pipe and smoke it, Milton!' Financial Times, 2022-09-16, retrieved 2024-07-24^
- Tony Biasotti. Patagonia to lay off as many as 90 employees if they won't relocate Ventura County Star, June 26, 2024, retrieved 2024-06-27^
- Our Company History - Patagonia