Europe’s Wealthiest Man Has Lost $30 Billion Amid Coronavirus Crisis
Bernard Arnault, the richest man in Europe has lost $30billion during the coronavirus pandemic, more than any other person in the world, as reported by The daily mail.
This calculation was revealed by the Bloomberg Billionaires Index.
Bernard Arnault is the chairman and CEO of the prestigious luxury empire, LVMH Moët 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 been financially affected amid the coronavirus crisis.
The widespread economic devastation caused by the spread of the novel coronavirus has seen LVMH shares plummet by 19% in a year.
This 19 percent indicates that Arnault’s net worth has reduced by $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.
Many of Arnault’s 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.
LVMH has strongly denied any suggestion it would walk away from the deal or haggle the price amid the current coronavirus crisis.
LVMH plans to slash its capital expenditure by up to 35%, which will postpone some store openings and renovations, Bloomberg said.
Arnault and four other executives were also reported to forego their April and May salaries in light of the pandemic.
Despite this, both LVHM officials and industry experts who know Arnault well are confident the ‘highly-successful risk taker’ businessman will weather the storm.
The virus outbreak has led to many entrepreneurs losing huge profits while some have lost their jobs because of the effect of the lockdown and business closure.