Fernando Alonso is putting his fashion brand up for sale after incurring a loss of €3 million annually since its inception. Kimoa, who was himself a two-time world champion in Formula 1 as a brand ambassador, incurred a loss of nearly 650,000 euros in the last year alone, despite the internet being bombarded by the coronavirus shutdown.
The Oviedo racer, the 2005 and 2006 Formula One World Champion, launched a fashion apparel company called Kimoa in 2017, which put sustainability as its science as well as its sporting character.
Kimoa’s losses have accumulated around €3 million in the four years since. Last year alone, the revenue loss was 650,000 euros, which is about 13 percent more than the previous year, 2019. The data is published by Quimoalar, the company that hosts the business, and in Spanish This was reported by the news portal Cinco Dias.
Fashion brand Alonso closed last year with a negative balance after an initial recovery: Revenues from Quimoalar SL, which sells Kimoa products, fell nearly 20 percent to €843,000, although it still exceeded €1 million in 2019 and 2018.
Last year, it reached a record with a turnover of 1.2 million euros. Quimoalar SL mainly sells sunglasses, caps, professional cycling apparel and ski goggles, but even electric scooters to 74 countries through its website.
However, the expansion in supply was far from enough to give a boost to the business. The increased loss led to the sale of 75 percent of the capital to the US company Revolution Brands, whose main portfolio is the distribution of electric scooters and urban fashion items.
Alonso holds a 25 percent stake in Quimoalar despite the bad news and remains the Kimoa brand ambassador.
In a statement of cooperation issued in the United States, the parties set a goal of expanding Kimoa’s presence in North America with fifty new locations within two years. The transaction amount was not disclosed. The company was run by Alonso’s childhood friend, Alberto Fernandez Albellares, until the recent sale of the company.
It is also important from a marketing point of view that Alonso has remained an ambassador for Kimoa ever since He recently extended his contract with the Alpine F1 Team The excellent pilot has 3.4 million followers on Instagram, 2.8 million on Twitter and 2.1 million on Facebook.