Friday, May 8, 2020

Europe's wealthiest man loses $30bn due to coronavirus crisis

The richest man in Europe has lost an astonishing $30billion during the coronavirus pandemic - more than any other person in the world, as calculated by the Bloomberg Billionaires Index.

Frenchman Bernard Arnault is the chairman and CEO of the prestigious luxury empire LVMH Mo√ęt Hennessy and the third-richest billionaire worldwide, according to Forbes.

The 71-year-old father-of-five oversees a portfolio of 70 luxury brands, including Louis Vuitton and Sephora, many of which have taken a colossal financial battering amid the coronavirus crisis. 

The widespread economic devastation caused by the spread of the killer bug has seen LVMH shares plummet by 19% in a year, Bloomberg reported.

It means Arnault's net worth has plunged by a staggering $30billion. Bloomberg reported that this means he has lost more than any other individual in the world.

As of May 6, the businessman had lost as much money as Jeff Bezos, chairman of Amazon.com Inc has gained, the news site reported. 

Arnault is currently worth $77billion according to the Index, which is updated daily.

The majority of Arnault's luxury good brand stores have been shuttered for more than a month, leading to billions in lost revenue, as lockdown measures to contain coronavirus plunge the global economy into its worst crisis since World War II.

Many of Arnault's flagships brands including Louis Vuitton - believed to have an astonishing profit margin as high as 45% - may no longer be seen as priority purchases for potential consumers.

Arnault is also due to pay out $16billion after striking a deal in November last year for the jewellery group Tiffany & Co, Bloomberg added, which is believed to be the largest luxury acquisition ever.

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