Story Highlight
– Super-rich celebrities typically lose money on luxury assets.
– Investment in pre-owned watch businesses often leads to losses.
– Chronext faced layoffs and administration issues after IPO failure.
– Hodinkee was sold for £11 million post-significant losses.
– WatchBox and WristCheck show potential for profitable investments.
Full Story
The financial landscape for affluent celebrities can often be precarious, with various avenues leading to significant monetary losses. High-profile purchases such as private jets or luxury yachts can deplete wealth heavily, as their values can plummet by nearly half within just a few years, alongside substantial annual upkeep costs that run into millions.
Amidst this backdrop, some sports and entertainment icons have turned their attention to the pre-owned watch market, which has recently proven to be a risky investment. Noteworthy figures like Roger Federer are alleged to have invested in Chronext, a watch platform that began in Germany and transitioned to Switzerland, where it aimed for an initial public offering (IPO) valued at approximately CHF 700 million in 2021. However, this IPO never materialised. In 2022, the company was forced to reduce its workforce by a third due to a slowdown in the market after a price bubble burst. By 2024, Chronext entered voluntary administration but managed to continue operating. Despite its survival, the prospect of lucrative exits for remaining stakeholders remains uncertain.
Another venture, Hodinkee, faced similar challenges following its acquisition of Crown & Caliber in 2021. The company raised $40 million with contributions from celebrities such as Tom Brady and John Mayer, as well as investment groups like LVMH Luxury Ventures. The pre-owned watch business was valued at $100 million at the time. However, the post-acquisition landscape changed drastically when market conditions turned unfavorable. Hodinkee had to lay off many employees following a downturn in the market and was ultimately purchased by Watches of Switzerland Group in 2024 for a mere £11 million. The structure of the deal required Hodinkee to finance its acquisition through future profits.
Meanwhile, Chrono24, an online platform for buying new and pre-owned watches, insulated itself somewhat from the market downturn, as it does not hold inventory. However, its celebrity endorsements, including footballer Cristiano Ronaldo, did not shield it from struggles, especially following the cancellation of its planned IPO. Prior to 2021, Chrono24 had accumulated €200 million through several funding rounds, and by then, its valuation had surged past €1 billion, backed by several notable investors. Yet, as the sector cooled, the company was compelled to downsize, first reducing its workforce to 435 in early 2023 and later to approximately 350 in 2025 under a restructuring effort.
A fresh venture in this competitive landscape is Bezel, based in Los Angeles, which has attracted early investments from a host of celebrities, including Kevin Hart, John Legend, and J Balvin. Recently, new investors like Jack Draper and Tom Segura have joined in funding rounds. Bezel has indicated that, while it is currently unprofitable, it is optimistic about future financial viability. Co-founder Chase Pion shared his thoughts on the company’s trajectory, stating, “We are not profitable yet, but we are marching toward it… profitability becomes a realistic goal in the short to medium term.”
Despite the challenges faced by many players in this sector, some investments are beginning to show promise. Michael Jordan’s involvement in WatchBox, which has been integrated into The 1916 Company alongside several other established businesses, appears to be paying off. Similarly, Jay-Z’s $5 million stake in Hong Kong’s WristCheck, co-founded by Austen Chu and Sean Wong in 2020, is also yielding positive results. The marketplace boasts nearly 600,000 Instagram followers, while Chu’s personal account has garnered a significant following, positioning it as a major player in social media and one of the largest trading platforms in the sector.
