Usually preferring to stay out of the spotlight, Fashion Nova founder and CEO Richard Saghian made an unusual purchase this week, paying $141 million for a mega-mansion in Bel Air.
the vast domain perched, with 21 rooms, a nightclub and several swimming pools, is the type of purchase worthy of a billionaire. Indeed, by Forbes‘ calculations, the fast fashion mogul is worth around $1.4 billion. His fortune stems from his 100% ownership of the company, which makes more than $1 billion in annual sales, according to a person familiar with the matter. He also has a growing real estate collection, including several mansions in Los Angeles.
Saghian, 40, has made his fortune selling fast fashion to the Instagram set, tapping celebrities like Cardi B, Kylie Jenner and Nicki Minaj to showcase the hundreds of new styles that hit the site every week.
“It’s important to have lots of styles because our customers post so much online and need new clothes. We don’t want girls showing up to the club in the same outfit. We need 50 different denim jackets. Not just one,” Saghian said Womenit’s Wear daily in 2018.
Born in Los Angeles to Iranian parents, he started the online retailer in 2006, selling low-cost clubwear to women with Coca-Cola bottle figurines. He wanted to take fast fashion and make it even faster, so he commissioned makers from his Los Angeles backyard to sew clothes fast. Rather than opening and stocking stores, he went straight online with new styles and asked celebrities and influencers to post photos wearing the clothes on social media. In 2018, Fashion Nova was most googled fashion brandbeating Louis Vuitton, Versace and Gucchi.
Fashion Nova is part of a generation of so-called super fast fashion companies like Asos, Revolve and Shein, frequented by young online shoppers who like constant newness and low prices. Unlike H&M and Zara, they don’t have thousands of physical stores.
The company did not go unnoticed. In 2016 it was immersed in an investigation by the Labor Department, which found that the workers who made its clothes in the Los Angeles factories had been underpaid. The company denied at the time underpaying the workers. The workers were not employed directly by Fashion Nova, but by its suppliers.
He’s also fought copyright lawsuits, including one from Adidas filed this week. In January he agreed to pay $4.2 million to settle Federal Trade Commission allegations that it removed negative reviews from its website. Fashion Nova denies ever removing the reviews.
Little is known about Saighan, who rarely speaks with reporters. He has long held a stranglehold on the company’s management, only hiring a chief financial officer and chief marketing officer in recent years. He is unmarried and has no children, but describes himself as an “avid real estate collector”. In 2018, he bought a Hollywood Hills home from Aviici after the disc jockey killed himself, paying $17.5 million. In 2021, Saighan bought a beach house in Malibu for $14.7 million from Netflix executive Ted Sarandos.
His latest purchase, “The One” in Los Angeles, is his biggest purchase to date and will likely serve as a backdrop for company photoshoots and a venue to host celebrities and influencers. It has a sky deck with several swimming pools, a candy room, a billiard room, a private theater, a bowling alley, a lounge, a spa and a nightclub. .
It was at his Hollywood Hills mansion that an attempted robbery took place last summer, after three men wearing ski masks followed his Rolls-Royce into the tony enclave and ordered the two men accompanying Saighan to lie on the ground and put on their watches and jewelry. . A confrontation with the security guard led to gunfire, ultimately resulting in the deaths of four people and the death of a suspect. Saighan was not injured.