The business failure of Fernando Alonso and his million-dollar losses

Fernando Alonso's business adventure in the world of fashion has not reached the same levels of success as the sports career of the two-time Formula 1 world champion. In 2017 the Spanish driver launched Kimoa, a textile firm of an urban nature focused on sustainability that Alonso himself has promoted since then in his public appearances, wearing some of his shirts, caps or sunglasses, taking advantage of the international pull of his figure.

However, it has been of little use that Fernando Alonso has promoted Kimoa in all competitions, interviews at the foot of the track or in television appearances as 'El hormiguero'. The pilot has finally had to make the decision to sell it due to the million-dollar losses accumulated over four years.

Despite the enormous media exposure that Kimoa has had, the company has not achieved the expected profitability and, in 2020, accumulated losses of 650,000 euros. Also last year, the company's income fell by 20% to 843,000 euros, according to Cinco Días reports after consulting the annual accounts, deposited in the Mercantile Registry.

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In 2018, Quimoalar had exceeded one million euros in revenue, but the following year, far from taking off the business, revenue fell by 11%, although losses were also reduced to 575,000 euros. The situation in 2020, a very difficult year for the textile industry due to the pandemic, has led Alonso and his partners to make the decision to sell practically the entire brand.

The company confirmed this through a statement detailing that Fernando would retain 25% of Quimoalar's capital and will continue to be the brand's ambassador. In the text, Alonso explained his feelings after the sale: “We created Kimoa with a sustainable soul and a spirit of never giving up, inspired by motor sports. It is an honor to continue carrying the Kimoa logo, building the brand and welcoming everyone who shares our vision into the family.”

The amount of the transaction is unknown, but, at the end of 2020, the company had a negative net worth of three million euros and a long-term liability of 7.4 million corresponding to "other debts" of unknown origin.