Following a lifetime of rejecting potential business partners, the late Italian designer Giorgio Armani directed his family to gradually divest his extensive fashion empire.
Armani, who passed away last week at the age of 91, had established the most valuable private luxury brand in the world.
His will, as reported by Italian media on Friday, divides the Armani Group among his immediate family and the Armani Foundation, which was founded in 2016 to safeguard the designer’s heritage.
Donatella Versace (centre) arrives to pay tribute to Giorgio Armani. Pic: Reuters
The will also stipulates that 15% of the company must be divested within 18 months of the designer’s passing, with priority given to French conglomerate LVMH, cosmetics brand L’Oreal, and eyewear giant Essilor-Luxottica.
An additional 30% to 54.9% should be sold to the same buyer within five years, according to the document.
This decision represents a significant departure from Armani’s stance during his five-decade tenure as the head of the fashion house. He had consistently resisted ceding any control to external investors, maintaining sole ownership of the Armani Group until his demise.
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Giorgio Armani was responsible for changing the way people dressed at the end of the 20th century, Anna Murphy, fashion director of The Times, has told Sky News.
If a deal with one of the specified companies, or another of similar stature, cannot be reached, the will mandates a public listing on the stock market as an alternative.
Despite the Armani Group experiencing stagnant revenues in recent years amid a broader luxury market slowdown, the potential sale is anticipated to attract significant interest due to the brand’s enduring prestige.
Italian eyewear company Essilor-Luxottica expressed willingness to explore a potential agreement.
«We are honored by the attention our group and its leadership received from Mr. Armani,» a spokesperson remarked.
The largest portion of the company, 30%, is designated for Armani’s longtime partner and collaborator Pantaleo Dell’Orco, who will also oversee 40% of the voting rights and lead the Armani Foundation.
Armani’s sister Rosanna, her son Andrea, and the two daughters of his late brother, Silvana and Roberta, are each allocated 15%, with Rosanna and Roberta lacking voting privileges. Armani did not have children.
The Armani Foundation will hold just 10% of the shares but will control 30% of the voting rights.
In the will, Armani stipulated that Dell’Orco’s shares should be divested at twice the pace of other family members, while the Armani Foundation should maintain control over its stake.