Middle Eastern Influence Grows: Chalhoub Group Backs US Fashion Brand Willy Chavarria

In a bold move to reshape its fashion influence, Chalhoub Group has acquired a minority stake in Willy Chavarria’s burgeoning brand, aligning with its broader strategy to transition from traditional distribution roles to becoming an active player in global brand development.

Chalhoub Group expands its fashion reach. The luxury group has taken a minority stake in designer Willy Chavarria’s brand, in a move that consolidates the Middle East’s largest fashion holding company’s expansion into direct brand investment. Chalhoub’s entry into the New York company’s capital comes at a time of strong growth for its menswear designs, recognized for their culturally engaged aesthetics and growing presence in major international showcases.

As reported by WWD, the investment is in the sub-$5 million venture capital range and is in addition to the participation of FAE Fashion Ventures, which backed the designer in 2024. The alliance brings together Chalhoub’s operational and regional expansion expertise with FAE’s brand-building vision and represents the luxury group’s latest strategy to move from distributor to active brand owner.

Since FAE’s entry, Chavarria’s brand has tripled its multi-brand outlets and has sealed collaborations with Adidas, Don Julio and Tinder. The designer’s presence at Paris Fashion Week has helped reinforce his global notoriety, consolidating his workwear-inspired tailoring aesthetic and narratives focused on identity, community and immigration.

For Chalhoub, the operation is part of a strategy initiated more than a decade ago to diversify its business beyond distribution. With more than 950 stores and 16,000 employees in eight countries, the family-owned group founded 70 years ago has moved from providing access to international brands to prioritizing direct and scalable investments in brands with global potential.

Chalhoub Group has invested around $5 million in the firm

The company’s approach is based on providing long-term operational support and partnerships, moving away from aggressive consolidation strategies. The philosophy of the houlding seeks to accompany the founders in the sustainable development of their companies, while maintaining their creative and strategic vision.

This strategy coincides with that of FAE, which replicates in fashion the logic of talent development in the music sector, investing in early-stage brands with a strong identity. Before Chavarria, its first venture was Casablanca Paris.

Willy Chavarria’s new phase of growth contemplates opening a flagship store in New York, a city that will serve as the brand’s strategic base, without ruling out future expansions in Paris, Madrid and Mexico City. In the Middle East, Chalhoub foresees a progressive development, taking advantage of the pull of existing partnerships and the sustained growth of the luxury market in the region.

Both Chalhoub and FAE have indicated that the brand’s expansion will be approached in a controlled manner, prioritizing team building and infrastructure to ensure long-term stability over short-term revenue targets. The strategy is to strengthen end-customer knowledge and build global brand equity before saturating a single market.