Key Points:
- Mandate to Sell: Giorgio Armani’s will instructs his heirs to sell a majority stake in his fashion empire, a stark reversal of his lifelong stance on independence.
- Preferred Buyers: French luxury giant LVMH, cosmetics group L’Oréal, and Italian eyewear firm EssilorLuxottica are named as priority suitors, a move that has surprised the industry.
- Heirs & Control: Longtime partner Leo Dell’Orco receives the largest share (30%) and significant voting power (40%), while other family members inherit smaller stakes.
- Foundation’s Role: The Armani Foundation is positioned to retain a minimum 30.1% stake, acting as a permanent guardian of the brand’s core principles and style.
The fashion world has been left reeling by the posthumous revelations from Giorgio Armani’s will. The iconic Italian designer, who passed away last week at the age of 91, issued a final decree that upends his 50-year legacy of fierce independence: he has instructed his heirs to sell the luxury brand he meticulously built from the ground up.
This decision, outlined in a will drafted in March and published by Italian media, represents a monumental shift from the designer’s long-held public stance of protecting the company’s Italian roots and autonomy at all costs.
A Shocking Directive: Armani’s Final Wish
In the will, “King Giorgio” meticulously lays out a plan for the gradual sale of his vast empire, estimated to be worth between €5 billion and €12 billion. The document stipulates that his heirs must first sell a 15% stake in the business within 18 months of his death. Following this initial sale, an additional stake of 30% to 54.9% is to be sold to the same buyer within a three to five-year timeframe.
Should a suitable deal with a private company fail to materialize, Armani provided a contingency plan: a public stock market listing. In either scenario, the will makes it clear that the Armani Foundation, established in 2016, will play a pivotal role in the company’s future.
The Suitors: A Surprising French Connection
Perhaps the most stunning revelation in the will is the list of preferred buyers. Priority is to be given to French luxury titan LVMH, French cosmetics giant L’Oréal, and Italian-French eyewear company EssilorLuxottica. The naming of two prominent French corporations has sent shockwaves through the Italian fashion industry, which has often viewed French conglomerates with a degree of rivalry.
The inclusion of LVMH, controlled by billionaire Bernard Arnault, is particularly noteworthy. In a 2023 documentary, Armani had emphatically dismissed the idea of selling his group to the French. An executive in Milan told the Financial Times it was “unthinkable” that Armani would name Arnault as a preferred buyer just a few years later.
All three named companies have responded positively. LVMH stated it was “honoured” to be considered, while L’Oréal, which has a long-standing beauty partnership with the brand, was “touched and honoured.” Analysts widely believe LVMH is the most likely candidate, given its vast resources and strategic interest in adding the prestigious Armani name to its portfolio of brands.
The Heirs and the Foundation: A Complex Inheritance
Giorgio Armani, who had no children, has divided his multi-billion dollar fortune between his closest relatives, his longtime partner, and his foundation.
- Leo Dell’Orco, Armani’s right-hand man and partner, emerges as the most significant individual heir, receiving a 30% stake in the company and controlling a formidable 40% of the voting rights. He will also chair the Armani Foundation.
- The designer’s sister, Rosanna, and his nieces, Silvana and Roberta, will each receive a 15% stake. However, Rosanna and Roberta will not have voting rights.
- The Armani Foundation will receive an initial 10% of the shares but will control 30% of the voting rights, ensuring it remains a powerful influence.
An executive committee statement emphasized the foundation’s crucial role as a “permanent guarantor of compliance with the founding principles.” These principles include maintaining an ethical approach, focusing on innovation and quality, and preserving the “essential, modern, elegant, and understated style” that defines the Armani brand. The designer’s vast real estate empire was bequeathed to his sister, nieces, and nephew, with Dell’Orco retaining the use of several luxury properties across the globe.
Image Referance: https://www.firstpost.com/explainers/italian-designer-giorgio-armani-fashion-empire-heirs-13933409.html
