{"id":19029,"date":"2025-09-13T15:04:12","date_gmt":"2025-09-13T15:04:12","guid":{"rendered":"https:\/\/ipp-news.com\/?p=19029"},"modified":"2025-09-13T15:04:12","modified_gmt":"2025-09-13T15:04:12","slug":"in-surprise-twist-armanis-will-sets-stage-for-sale-of-fashion-empire","status":"publish","type":"post","link":"https:\/\/ipp-news.com\/?p=19029","title":{"rendered":"In surprise twist, Armani\u2019s will sets stage for sale of fashion empire"},"content":{"rendered":"
Late designer Giorgio Armani instructed heirs to gradually sell the revolutionary fashion house he created 50 years ago or seek a market listing, his will said, setting off a race to control one of the world\u2019s best-known brands and a major shift for a company highly protective of its independence and Italian roots.<\/p>\n

The will says that priority should be given to luxury conglomerate LVMH, beauty heavyweight L\u2019Oreal , eyewear leader EssilorLuxottica or another group of \u201cequal standing\u201d identified by a foundation the designer set up to preserve his legacy with the agreement of Armani\u2019s business and life partner Pantaleo Dell\u2019Orco.<\/p>\n

The designer, known in the industry as \u201cKing Giorgio\u201d, died on September 4 at 91 with no children to inherit his fashion empire, which industry analysts value at between \u20ac5-12 billion. All three companies named issued statements suggesting they were open to the possibility of a deal.<\/p>\n

The explicit mention of stake sales and of France-listed players as potential buyers came as a surprise, given Giorgio Armani\u2019s persistent refusal to dilute his control or list his fashion group, which industry experts say retains appeal despite a global luxury slowdown.<\/p>\n

LVMH, controlled by French billionaire Bernard Arnault, said it was honoured to be named as a potential partner.\u201dGiorgio Armani honours us by naming us as a potential partner for the exceptional fashion house he has built,\u201d Arnault said in a statement. \u201cIf we were to work together in the future, LVMH would be committed to further strengthening its presence and leadership around the world.\u201d<\/p>\n

EssilorLuxottica, controlled by the heirs of Italian entrepreneur Leonardo Del Vecchio and with commercial ties to Armani, said in a statement it would consider a possible deal. French cosmetics group L\u2019Oreal, which holds a licensing agreement with the Armani group until 2050, also said on Friday it will study the opportunity.<\/p>\n

The Armani group has commercial partnerships with both L\u2019Oreal and EssilorLuxottica. But with a market value of \u20ac240 billion and a reputation for being a patient and supporting minority investor, LVMH may ultimately prevail, some analysts said.<\/p>\n

\u201cWe think that LVMH would likely be the most interested, of the three, in a stake, were it to become available, given the strategic fit,\u201d analysts at Berenberg said in a note. They said the group could easily afford to buy Armani, which they valued at \u20ac5-7 billion.<\/p>\n

The will, comprising two documents filed with a notary in March and April respectively and reviewed by Reuters, states heirs should sell an initial 15% stake in the Italian fashion house within 18 months of Armani\u2019s death.<\/p>\n

They should later transfer an additional 30% to 54.9% stake to the same buyer three to five years after the designer\u2019s death. As an alternative to the sale of the second tranche of shares, an initial public offering should be pursued, in Italy or in a market of equal standing, the will said.<\/p>\n

These types of provisions are essentially binding and could be challenged in court if not fulfilled, according to the Italian notary association.<\/p>\n

New era<\/p>\n

Over the years, the brand that revolutionised modern fashion through its minimalist jackets and suits received several approaches, including one in 2021 from John Elkann, scion of Italy\u2019s Agnelli family, and another from luxury brand Gucci, when Maurizio Gucci was still at the helm.<\/p>\n

Armani was the sole major shareholder of the company he set up with his late partner Sergio Galeotti in the 1970s and over which he maintained a tight rein \u2013 both creative and managerial \u2013 until the very end.<\/p>\n

He leaves behind a business which generated relatively stable revenue \u2013 \u20ac2.3 billion in 2024 \u2013\u00a0 but whose operating profits have shrunk to less than 3% of revenue, according to Berenberg\u2019s calculations.<\/p>\n

The will, which lists six different types of shares with different voting rights, gives the Fondazione Giorgio Armani and Dell\u2019Orco 30% and 40% of the company voting rights, respectively, meaning they would together control the fashion group with 70% of total.<\/p>\n

The foundation will retain a 30.1% stake in a listing and in a sale. \u201cThe Fondazione … shall never hold less than 30% of the capital, thereby acting as a permanent guarantor of compliance with the founding principles,\u201d Armani\u2019s executive committee said in a statement, adding that the foundation will propose the name of Giorgio Armani\u2019s successor as group CEO.<\/p>\n

The foundation\u2019s five-member board will be chaired by Dell\u2019Orco, in accordance with bylaws. Other board members include Rothschild partner Irving Bellotti, Armani\u2019s nephew Andrea Camerana and two family outsiders, a person close to the matter told Reuters.<\/p>\n

Heirs should consider other fashion and luxury companies with which the Armani group has commercial ties for a future sale, the will also said.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Late designer Giorgio Armani instructed heirs to gradually sell the revolutionary fashion house he created 50 years ago or seek a market listing, his will said, setting off a race to control one of the world\u2019s best-known brands and a major shift for a company highly protective of its independence and Italian roots. The will […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-19029","post","type-post","status-publish","format-standard","hentry","category-english-news"],"_links":{"self":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts\/19029","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19029"}],"version-history":[{"count":0,"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts\/19029\/revisions"}],"wp:attachment":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19029"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19029"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19029"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}