LVMH buys stake in Madhappy
Luxury conglomerate LVMH has acquired a stake in Madhappy, the American direct-to-consumer casualwear brand.
The Paris based luxury behemoth made the investment via LVMH Luxury Ventures, a vehicle with the group.
The move marks the latest surprising investment by LVMH Luxury Ventures, which had previously taken minority stakes in Gabriela Hearst; Stadium Goods and Officine Universelle Buly, an ancient French beauty marque.
Madhappy bills itself as “an inclusive community of local optimists.” According to Madhappy’s website: “We create exceptional products with our own flair. Host impactful experiences around the world. And strive to give a platform to mental health conversation.”
The brand is rather distant from LVMH’s couture houses like Christian Dior or Givenchy with their $250,000 wedding dresses. Its entry-level crewneck sweatshirt, tagged with Optimism, is priced at $160.
LVMH Luxury Ventures confirmed the investment in a statement made to FashionNetwork.com: "This decision is part of our desire to diversify our portfolio of investments in recognized brands, be it Gabriela Hearst or in emerging brands, such as Madhappy, which demonstrate an interesting approach and that we want to support in their development.”
Madhappy had no comment on the development.
Madhappy was co-founded in Los Angeles in 2017 by Peiman Raf, his brother Noah Raf, and friends Joshua Sitt and Mason Spector, creating a limited range of hoodies, sweatpants, T-shirts and hats, all carrying the brand’s sans-serif logo. Since then, the brand has opened over a half-dozen pop-ups in LA; two in New York; two in Aspen and one in Miami. While building a cult following by collaborating with brands like Jon and Vinnys, Pencils of Promise and Alfred Coffee. With 45,000 Instagram followers and fans like Cardi B, Anwar Hadid and The Weeknd, the brand certainly built momentum.
In March, Madhappy raised some $2 million in a founding round from strategic investors that included Sweetgreen, MeUndies and Justin Caruso, son of real estate magnate Rick Caruso. Funds used to develop its website and open new pop-ups, like one in Williamsburg.
Copyright © 2021 FashionNetwork.com All rights reserved.