Patagonia, Inc.

Short description: American clothing retailer

Patagonia, Inc.

Type| Private benefit corporation
Industry| Apparel
Founded| May 9, 1973; 53 years ago (1973-05-09)
Founder| Yvon Chouinard
Headquarters| Ventura, California, U.S.

Key people

| Ryan Gellert, CEO[1]
Products| Outdoor clothing
Revenue| $1.5 billion (2022 estimate)

Number of employees

| 1,000 (2017)
Website| patagonia.com

Patagonia, Inc. is an American retailer of outdoor clothing. It was founded by Yvon Chouinard in 1973 and is based in Ventura, California.[2]

Patagonia operates stores in 10+ countries globally,[3][4] as well as factories in 16 countries.[5]

## Contents

* 1 History
* 2 Activism
* 2.1 Environmental
* 2.2 Politics and land preservation
* 2.3 Facebook ad boycott
* 3 Controversy
* 4 References
* 5 Further reading
* 6 External links

## History

Mannequin dressed in Patagonia clothing and gear

Yvon Chouinard, an accomplished rock climber,[6] began selling hand-forged mountain climbing gear in 1957 through his company Chouinard Equipment.[7] 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.[8]

In 1970, Chouinard obtained rugby shirts from Scotland that he wore while climbing because the collar kept the climbing sling from hurting his neck.[8][9]

Great Pacific Iron Works,[10] 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.[11] In 1981, Patagonia and Chouinard Equipment were incorporated within Great Pacific Iron Works.[12] In 1984, Chouinard changed the name of Great Pacific Iron Works to Lost Arrow Corporation.[13]

A Patagonia store in Portland, Oregon, was located in a renovated 1895-built former warehouse until moving to a new location in 2017.

Patagonia has expanded its product line to include apparel targeted towards other sports, such as surfing.[14] In addition to clothing, they offer other products such as athletic equipment, backpacks, sleeping bags, and camping food.[15] By the late 2010s, branded Patagonia fleece vests became known for their use by the financial elite, and in 2019, Patagonia announced that it would restrict distribution of branded products to firms committed to Environmental, social, and corporate governance initiatives.[16]

In 2012, the company added food to their line of offerings, under the brand Patagonia Provisions.[17]

In April 2017, Patagonia announced that merchandise in good condition can be returned for new merchandise credits. The used merchandise is cleaned, repaired and sold on its "Worn Wear" website.[18] As of April 2020, Worn Wear had sold more than 120,000 items.[19] In 2019, it launched a program named ReCrafted that creates and sells clothing made from scraps of fabric coming from used Patagonia gear.[20]

In September 2020, Patagonia announced that Rose Marcario would step down as its chief executive officer and be succeeded by Ryan Gellert.[1]

In December 2021, the European Center for Constitutional and Human Rights filed a criminal complaint in a Dutch court against Patagonia and other brands, alleging that they benefited from the use of forced Uyghur labor in Xinjiang.[21]

In September 2022, Chouinard announced that ownership of Patagonia would be donated to a trust to ensure that profits are used to address climate change and protect undeveloped land around the world.[22][23]

## Activism

### Environmental

Patagonia commits 1% of its total sales to environmental groups, since 1985 through One Percent for the Planet, an organization of which Yvon Chouinard was a founding member.[24] In 2015, the firm launched Common Threads Partnership, an online auction-style platform that facilitated direct sales of used Patagonia clothing.[25][26] In 2016, Patagonia pledged to contribute 100% of sales from Black Friday to environmental organizations, totaling $10 million.[27] 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."[24]

In 2012, Patagonia became a Certified B Corporation.[28] The company was then registered as a benefit corporation in the State of California, after the California Corporations Code were revised setting new specific requirements.[29] The firm also aims to become carbon neutral by 2025.[30] Patagonia has begun to utilize a circular economy strategy in their product design,[31] including creating ‘Worn Wear’, where used product is resold.[32] In 2021, Patagonia announced that it would no longer produce its clothing with corporate logos added because "adding an additional non-removable logo reduces the life span of a garment, often by a lot, for trivial reasons".[33]

### Politics and land preservation

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. Patagonia also opposed Utah Governor Gary Herbert's request that the Trump administration revoke the recently designated Bears Ears National Monument in southern Utah. After several companies joined the Patagonia-led boycott, event organizer Emerald Expositions said it would not accept a proposal from Utah to continue hosting the Outdoor Retailer trade show and would instead move the event to another state.[34]

On December 6, 2017, Patagonia sued the United States Government and President Donald Trump for his proclamations of reducing the protected land of Bears Ears National Monument by 85% and the Grand Staircase–Escalante National Monument by almost 50%.[35] Patagonia sued over the interpretation of the Property Clause of the U.S. Constitution in which the country vests Congress with the power to manage federal lands. The company's then-CEO, Rose Marcario, contends that when Congress passed the Antiquities Act of 1906, it did not give any president the power to reverse a prior president's monument designations.[36][37]

On April 5, 2021, Patagonia pledged $1 million to the activist groups Black Voters Matter and the New Georgia Project, regarding voter registration laws in Georgia.[38]

In 2021, Patagonia announced it would "not be bound by convention" and would close stores and give employees vacation from December 25 to January 2.[39]

### Facebook ad boycott

In July 2020, Patagonia suspended its advertising on Facebook and Facebook's photo-sharing app, Instagram, as part of the "Stop Hate for Profit" campaign, which some U.S. civil rights organizations launched because they believed the social networking company was doing too little to curb hate speech on its sites.[40]

## Controversy

File:PatagoniaLabel-2 (47279452331).jpgCurrent logo

In February 2005, Patagonia's sourcing of wool from Australia was criticized by PETA over the practice of mulesing. Patagonia has since moved its sourcing of wool from Australia to South America and the cooperative Ovis 21. However, in August 2015, PETA released new video footage showing how sheep were treated cruelly in Ovis 21 farms.[41] This led Patagonia to stop sourcing wool from Ovis 21.[42] In June 2016, Patagonia released a set of new wool principles that guide the treatment of animals as well as land-use practices, and sustainability.[43][44]

In 2007 and 2011, internal audits revealed that factories in Patagonia's production supply chain were involved in human trafficking, a common problem in global mass production, leading to company efforts to address the labor abuses.[45]

In 2012, UK animal activist group Four Paws said that Patagonia used live-plucked down feathers and downs of force-fed geese.[46] In a statement on their website, Patagonia denied use of live-plucking but said it had used down procured from the foie-gras industry.[47] As of fall 2014, Patagonia said it was using 100% traceable down to ensure that birds were not force-fed or live-plucked and that down is not blended with down from unknown sources.[48]

## References

1. ↑ 1.0 1.1 Roshitsh, Kaley (24 September 2020). "Patagonia Names New CEO". https://wwd.com/business-news/human-resources/patagonia-ceo-named-executive-changes-ryan-gellert-jenna-johnson-1234602267/.
2. ↑ "Our Company History - Patagonia". https://www.patagonia.com/company-history/.
3. ↑ Yakowicz, Will (March 16, 2020). "At Billionaire-Owned Patagonia Outdoor Clothing Chain, Employees To Be Paid Despite Store Closures Amid Coronavirus" (in en). Forbes. https://www.forbes.com/sites/willyakowicz/2020/03/16/at-billionaire-owned-patagonia-outdoor-clothing-chain-employees-to-be-paid-despite-store-closures-amid-coronavirus/. Retrieved 2021-05-17.
4. ↑ Thomas, Lauren (2020-03-13). "Patagonia is closing all of its stores and shutting down its website because of the coronavirus" (in en). CNBC. https://www.cnbc.com/2020/03/13/patagonia-is-closing-all-of-its-stores-because-of-the-coronavirus.html.
5. ↑ "Patagonia: What to Know About the Outdoor Brand" (in en-US). https://www.highsnobiety.com/tag/patagonia/.
6. ↑ Wang, Jennifer (12 May 2010). "Patagonia, From the Ground Up". https://www.entrepreneur.com/article/206536.
7. ↑ "Into the Heart of Patagonia's Secret Archives". 6 July 2017. https://www.outsideonline.com/2197346/patagonia-archives.
8. ↑ 8.0 8.1 "Patagonia's History - A Company Created by Climber Yvon Chouinard and his commitment to the Environment (catalog paper, organic and recycled fabrics)". http://www.patagonia.com/us/patagonia.go?assetid=3351.
9. ↑ Stevenson, Seth. "Patagonia's Founder Is America's Most Unlikely Business Guru". The Wall Street Journal. ISSN 0099-9660. https://www.wsj.com/articles/SB10001424052702303513404577352221465986612.
10. ↑ "On Writing: The 1972 Chouinard Catalog that changed a business – and climbing – forever". https://signalvnoise.com/posts/2776-on-writing-the-1972-chouinard-catalog-that-changed-a-business-and-climbing-forever.
11. ↑ Sullivan, Michael (May 24, 2017). "Room to grow: Patagonia purchases former Brooks site north of Ventura". https://vcreporter.com/2017/05/room-to-grow-patagonia-purchases-former-brooks-site-north-of-ventura/.
12. ↑ "Trailblazer: Yvon Chouinard | OutInUnder - Slow Social Media". https://www.outinunder.com/content/trailblazer-yvon-chouinard.
13. ↑ Chouinard, Yvon (6 September 2016). Let My People Go Surfing: The Education of a Reluctant Businessman--Including 10 More Years of Business Unusual. Penguin. ISBN 9781101992531. https://books.google.com/books?id=3UJUCwAAQBAJ&q=Lost&pg=PT77. Retrieved 26 September 2018.
14. ↑ "Patagonia stakes a wider claim on the beach". http://www.mensvogue.com/clothing/threads/articles/2008/04/patagonia.
15. ↑ Picks, Owen Burke, Insider. "The best camping gear you can buy". https://www.businessinsider.com/best-camping-gear.
16. ↑ Friedman, Vanessa (April 5, 2019). "Are Bankers and Venture Capitalists Really Getting Fleeced by Patagonia?". The New York Times. https://www.nytimes.com/2019/04/05/fashion/patagonia-fleece-fintech-banking.html.
17. ↑ Fabricant, Florence (2012-04-24). "Patagonia Starts a Food Line" (in en-US). The New York Times. ISSN 0362-4331. https://www.nytimes.com/2012/04/25/dining/patagonia-starts-a-food-line.html.
18. ↑ Feldman, Jamie (2017-01-30). "Patagonia Just Made Another Major Move To Save The Earth And Your Wallet" (in en-US). Huffington Post. https://www.huffingtonpost.com/entry/patagonia-return-old-clothes_us_588f8066e4b02772c4e81e8d.
19. ↑ Batten, Chelsea (21 April 2020). "Patagonia's Worn Wear Collection Is Saving the Planet". https://www.themanual.com/outdoors/oatagonia-worn-wear-collection-recycled-recommerce/.
20. ↑ Segran, Elizabeth (11 January 2021). "Patagonia has had enormous success with upcycled clothing. Could other brands follow?". Fast Company. https://www.fastcompany.com/90592541/patagonia-has-had-enormous-success-with-upcycled-clothing-could-other-brands-follow.
21. ↑ Adegeest, Don-Alvin (2021-12-06). "Nike, Patagonia named in European lawsuit as being complicit in 'forced labour' practices in Xinjiang, China" (in en). https://fashionunited.com/news/fashion/nike-patagonia-named-in-european-lawsuit-as-being-complicit-in-forced-labour-practices-in-xinjiang-china/2021120644306.
22. ↑ Vlamis, Kelsey (2022-09-14). "Patagonia founder is giving away his billion dollar company and ensuring that all profits go towards fighting climate change" (in en-US). https://www.msn.com/en-us/money/savingandinvesting/patagonia-founder-is-giving-away-his-billion-dollar-company-and-ensuring-that-all-profits-go-towards-fighting-climate-change/ar-AA11PXGt.
23. ↑ Gelles, David (September 14, 2022). "Billionaire No More: Patagonia Founder Gives Away the Company". The New York Times. https://www.nytimes.com/2022/09/14/climate/patagonia-climate-philanthropy-chouinard.html.
24. ↑ 24.0 24.1 Miller, Ryan W. (November 28, 2018). "Patagonia plans to donate $10 million saved from Trump tax cuts to environmental groups". https://www.usatoday.com/story/money/2018/11/28/patagonia-money-saved-trump-tax-cut-environmental-cause/2143733002/.
25. ↑ Goldberg, Rebecca; Wilcox, Ronald (February 6, 2015). "Case in point: Patagonia urged buyers to pick used items over new. It was a success". https://www.washingtonpost.com/business/case-in-point-patagonia-urged-buyers-to-pick-used-items-over-new-it-was-a-success/2015/02/04/09ce0220-abc4-11e4-ad71-7b9eba0f87d6_story.html.
26. ↑ Davies, Helen (February 17, 2021). "13 Green Marketing Examples And Great Environmental Initiatives". https://www.frontsigns.com/blog/green-marketing-examples-and-great-environmental-initiatives/.
27. ↑ Kavilanz, Parija (November 29, 2016). "Patagonia's Black Friday sales hit $10 million -- and will donate it all". CNN. https://money.cnn.com/2016/11/29/technology/patagonia-black-friday-donation-10-million/index.html.
28. ↑ "Patagonia Works". B Lab. https://bcorporation.uk/directory/patagonia-inc.
29. ↑ Sterling, Scott (6 January 2012). "Patagonia is California's first benefit corporation". Southern California Public Radio. https://www.scpr.org/blogs/environment/2012/01/06/4190/patagonia-californias-first-benefit-corporation/.
30. ↑ Bentley, Daniel (January 24, 2019). "Doing Good and Making a Profit: These Apparel Companies Are Proving They Aren't Mutually Exclusive". Fortune. https://fortune.com/2019/01/23/patagonia-art-eden-sustainability/.
31. ↑ "Patagonia's Circular Economy Strategy" (in en-GB). 2017-01-16. https://www.businessoffashion.com/articles/sustainability/how-patagonia-transformed-the-circular-economy.
32. ↑ "Worn Wear - Used Patagonia Clothing & Gear" (in en). https://wornwear.patagonia.com/.
33. ↑ "The finance bro uniform is officially dead as Patagonia stops adding corporate logos to its ubiquitous fleece vests" (in en). Business Insider. https://www.businessinsider.com/patagonia-no-longer-adding-corporate-logos-to-its-clothing-2021-4.
34. ↑ Reimers, Frederick (8 February 2017). "Moving Outdoor Retailer Isn't About Politics. It's About Money.". Outside Magazine. https://www.outsideonline.com/2155931/outdoor-industry-pushes-back-against-utah. Retrieved 20 April 2018.
35. ↑ McCarthy, Tom (August 26, 2017). "Patagonia joins forces with activists to protect public lands from Trump". The Guardian. https://www.theguardian.com/environment/2017/aug/26/public-lands-trump-patagonia-native-americans.
36. ↑ Marcario, Rose (December 6, 2017). "Patagonia CEO: This Is Why We're Suing President Trump". Time (magazine). http://time.com/5052617/patagonia-ceo-suing-donald-trump/. Retrieved December 6, 2017.
37. ↑ Gelles, David (May 5, 2018). "Patagonia v. Trump". The New York Times. https://www.nytimes.com/2018/05/05/business/patagonia-trump-bears-ears.html.
38. ↑ Choi, Joseph (April 6, 2021). "Patagonia to donate $1 million to Georgia voting rights groups". The Hill. https://thehill.com/business-a-lobbying/business-a-lobbying/546679-patagonia-to-donate-1-million-to-georgia-voting.
39. ↑ Aten, Jason (2021-12-24). "Patagonia's 5-Word Explanation of Why It's Closing Its Stores and Giving Employees a Week Off Is the Best I've Seen Yet" (in en). https://www.inc.com/jason-aten/patagonias-5-word-explanation-of-why-its-closing-its-stores-giving-employees-a-week-off-is-best-ive-seen-yet.html.
40. ↑ "Patagonia joins The North Face in Facebook ad boycott". 23 June 2020. https://www.reuters.com/article/us-facebook-ads-patagonia/patagonia-joins-the-north-face-in-facebook-ad-boycott-idUSKBN23T2JG.
41. ↑ "Patagonia's 'Sustainable Wool' Supplier EXPOSED: Lambs Skinned Alive, Throats Slit, Tails Cut Off" (in en-US). http://investigations.peta.org/ovis-lamb-slaughter-sheep-cruelty/.
42. ↑ "The Cleanest Line: Patagonia to Cease Purchasing Wool from Ovis 21". http://www.thecleanestline.com/2015/08/patagonia-to-cease-purchasing-wool-from-ovis-21.html.
43. ↑ Michelson, Megan (2016-07-29). "Want Ethically Sourced Wool? Buy from Patagonia." (in en). Outside Online. https://www.outsideonline.com/2101871/want-ethically-sourced-wool-buy-patagonia.
44. ↑ "Patagonia Wool Standard". Patagonia. 2016. https://www.patagonia.com/static/on/demandware.static/-/Library-Sites-PatagoniaShared/default/dw9294a7c0/slots/RMA/PAT_2016_Wool_Standard_r5.pdf.
45. ↑ "ALL YOUR CLOTHES ARE MADE WITH EXPLOITED LABOR". The Atlantic. https://www.theatlantic.com/business/archive/2015/06/patagonia-labor-clothing-factory-exploitation/394658/.
46. ↑ "Outdoor Company Patagonia: Down from brutal force-feeding". Four Paws. http://www.four-paws.org.uk/website/output.php?id=1175&idcontent=2795&language=1.
47. ↑ "The Lowdown on Down: An Update". The Cleanest Line. http://www.thecleanestline.com/2011/12/the-lowdown-on-down-an-update.html.
48. ↑ "Patagonia Traceable Down". Patagonia.com. http://www.patagonia.com/us/traceable-down.

## Further reading

* Rattalino (2018). "Circular Advantage Anyone? Sustainability driven innovation and circularity at Patagonia Inc.". Thunderbird International Business Review 60 (5): 747–755. doi:10.1002/tie.21917.
* Achabou (2013). "Luxury and sustainable development: Is there a match?". Journal of Business Research 66 (10): 1896–1903. doi:10.1016/j.jbusres.2013.02.011.
* Patagonia’s Balancing Act: Chasing Mass-Market Appeal While Doing No Harm
* A company that profits as it pampers workers
* How Patagonia Keeps Employee Turnover 'Freakishly Low'
* If Patagonia’s business model is a paragon of virtue, should more companies follow suit?
* Derby Berg, Meredith (2013-12-17). "Why Advertising Is 'Dead Last' Priority at Outerwear Marketer Patagonia". http://adage.com/article/cmo-strategy/advertising-dead-priority-patagonia/245712/.

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