Rihanna $36 million loss
Global superstar Rihanna is reported to have suffered a significant financial setback of around $36 million following the collapse of her luxury-fashion venture with LVMH. Her clothing label, launched in 2019 under the name Fenty and in partnership with the French luxury group, failed to gain the traction expected and was wound down in 2021.
According to financial accounts from her UK-registered company Denim UK Holdings, Rihanna had invested approximately €29.99 million in the venture, and LVMH committed roughly a matching amount. The venture was launched as “Project Loud France” and aimed at the ultra-luxury ready-to-wear market.
However, several hurdles plagued the brand’s performance. The pricing was positioned at the very high end—items such as a padded denim jacket nearly $1,000 and a corseted shirtdress around $810 were cited. The timing coincided with the onset of the global pandemic, which severely disrupted production and travel. Reports indicate that travel restrictions prevented Rihanna from visiting her atelier in Paris or overseeing Italian manufacturing facilities—factors that impeded the brand’s momentum.
In 2021, LVMH and Rihanna announced a pausing of the ready-to-wear arm of Fenty, citing a strategic decision to concentrate on other areas of her business such as cosmetics, skincare and lingerie. While the financial loss is sizeable, industry observers note that Rihanna remains in strong financial standing due to her successful ventures such as Fenty Beauty and Savage X Fenty.
This development offers several lessons. Even with celebrity power and a major luxury partner, the ultra-high-end fashion market presents distinct challenges that include inventory management, supply‐chain logistics, pricing strategy and timing. Moreover, shifting global conditions such as the pandemic can impose external shocks, especially for new labels. For Rihanna, the decision to redirect focus toward her more established product lines appears to have been a pragmatic response.
