Usually away from the spotlight, the founder and CEO of Fashion Nova, Richard Saghianmade a resounding purchase this week, shelling out 141 million dollars for a mega house to Bel Air.
The huge estate in the hills, complete with 21 bedrooms, a nightclub, and various pools, it’s the kind of buy for a billionaire. In fact, according to the calculations of Forbesthe fast fashion tycoon would have a assets of approximately $ 1.4 billion. His fortune stems from 100% ownership of his company which, according to a close source, makes over $ 1 billion in annual sales. He also has a growing collection of properties, including several villas in Los Angeles.
Become a billionaire with fast fashion
Saghian, 40, made a fortune selling fast fashion on Instagram, hiring celebrities come Cardi B, Kylie Jenner e Nicki Minaj to show the hundreds of new items put up for sale on the site every week.
“It is important to have a lot of models because our customers post a lot online and they need new clothes. We don’t want girls to show up at a club in the same dress. We need 50 different denim jackets. Not just one, ”Saghian told a WWD in 2018.
Born in Los Angeles to Iranian parents, he started his online business in 2006, selling low-cost club wear. He wanted to take the reins of fast fashion and make it even faster, so he hired LA producers to quickly sew the clothes. Instead of opening and stocking shops, he went straight online with new styles and asked celebrities and influencers to post photos of the clothes on social media. In 2018, Fashion Nova was the most searched fashion brand on Google, beating giants like Louis Vuitton, Versace and Gucci. According to Earnest Research, which analyzes credit card transactions, last year sales grew by 20% compared to 2019.
Fashion Nova is part of a group of ultra-fast fashion companies like Asos, Revolve and Shein, frequented by young online shoppers who love constant novelties and low prices. Unlike H&M and Zara, they don’t have thousands of physical stores.
The investigation and lawsuits in the US
However, there were some slips. In 2016 the company became involved in a United States Department of Labor investigation, who discovered how the workers who made his clothes in Los Angeles factories had been underpaid. The company denied: the workers were not employed directly by Fashion Nova, but by its suppliers.
He has also fought copyright lawsuits, including one filed by Adidas this week. In January, agreed to pay $ 4.2 million to settle Federal Trade Commission allegations that it removed negative reviews from its website. Fashion Nova denied this too.
Little is known about Saghian, who rarely talks to reporters. He has long held a tight grip on the management of the company, hiring only one chief financial officer and one chief merchandising officer in recent years. He is unmarried and has no children, but he describes himself as an “avid collector of real estate”. In 2018, he bought a Hollywood Hills home that had previously been owned by disc jockey Aviici before committing suicide, paying 17.5 million. In 2021, Saghian bought a beach house Malibu for $ 14.7 million from Netflix executive Ted Sarandos.
The mega house in Bel Air
His latest purchase in Los Angeles is his biggest deal and will likely serve as a location for corporate photo shoots and as a place to host celebrities and influencers. It boasts a rooftop terrace with several swimming pools, a cake room, a billiard room, a private theater, a bowling alley, a lounge, a spa and a nightclub.
Last summer he was at his Hollywood Hills mansion where a robbery attempt took place, after three men wearing balaclavas they would follow his Rolls-Royce and they would order the two men accompanying Saghian to lie down and hand over their watches and jewelry. A confrontation with the security guard resulted in gunfire which resulted in the killing of four people and the killing of a suspect. Saghian was not injured.
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