Parachute Home, Inc.

Who owns Parachute Home?
Parachute Home, Inc. is a private company backed by venture capital investors. Founder Ariel Kaye retains a significant stake, and outside investors hold the remainder of approximately $47 million in raised funding.

Is Parachute Home a public company?
No. Parachute Home, Inc. is privately held and does not trade on any stock exchange. It has not reported plans for an IPO or sale.

When was Parachute Home founded?
Ariel Kaye founded the company in 2014 in Los Angeles, launching with premium bedding sold direct to consumers online before expanding into bath, decor, mattresses and furniture.

How many stores does Parachute Home operate?
As of late 2026, the company operates seven stores, down from 26 in 2024. It closed 19 locations through 2024 and 2025 to focus on e-commerce, remaining stores and wholesale.

How much revenue does Parachute Home make?
The company does not disclose revenue. It peaked at approximately $150 million in 2021, and estimated e-commerce revenue was approximately $44 million in 2025.

Who is the CEO of Parachute Home?
Mehdi Ait Oufkir serves as CEO, leading the company's restructuring. Founder Ariel Kaye remains involved as founder and brand steward.

Ariel Kaye founded Parachute in 2014 in Los Angeles. A digital strategist who ran a home design blog while in graduate school, Kaye identified a gap in the market for premium, design-conscious bedding sold online. The brand launched with a focused collection of sheets, duvets and pillows, marketed on material quality, non-toxic production and a minimalist aesthetic it called "perfectly undone."

Venture funding fueled expansion through the mid-2010s. Parachute extended from bedding into bath, decor, mattresses and furniture, becoming one of the better-known names of the DTC era alongside brands like Casper and Brooklinen. It opened its first store in Los Angeles and built a national retail presence over the following years.

The pandemic supercharged the business. Revenue reached approximately $150 million in 2021 as consumers poured money into home goods, and the company kept adding stores, reaching 26 locations by 2024 across markets including New York, Chicago, Washington, D.C. and Minnesota. The growth, however, was built on demand that proved temporary.

The correction began in 2024. Home spending normalized, and many of the stores the company had opened in weaker brand-awareness markets underperformed. Between 2024 and mid-2025, Parachute closed 19 of its 26 stores, leaving seven locations including its Venice flagship and a Manhattan SoHo store. CEO Mehdi Ait Oufkir acknowledged the company had "overreached" with oversized stores in underpenetrated markets.

Since the reset, the company has concentrated on profitability: a reduced store base, e-commerce as the primary channel, and an expanding wholesale business selling through third-party retailers. Estimated e-commerce revenue was approximately $44 million in 2025, a fraction of the 2021 peak but reflecting a smaller, more sustainable operation.

Parachute emphasizes material quality and non-toxic production in its marketing, including OEKO-TEX certification on textiles, which certifies the absence of harmful substances. Sourcing is handled through contract manufacturers in textile centers including Portugal, Turkey and Asia.

The company does not publish a standalone sustainability report, consistent with its private status. Its philanthropic activities have included donation programs for returned and gently used goods, aligned with a brand identity built around responsible production.

The company's public scrutiny has centered on its store closures rather than misconduct.

Store closures (2024 to 2025). Shutting 19 of 26 stores drew significant media coverage as a visible case study in DTC physical retail struggles. CEO Mehdi Ait Oufkir publicly acknowledged the company had "overreached," an unusually candid admission that framed the move as correction rather than failure.

DTC model skepticism. Parachute has been featured in broader coverage questioning whether the direct-to-consumer model can sustain profitability at scale, a category-level debate rather than company-specific controversy.

Product recalls. No major product recalls or regulatory actions have been recorded against the company.