Giorgio Armani’s Will: What Happens to His Fashion Empire?
The passing of iconic Italian designer Giorgio Armani at the age of 91 has sent shockwaves throughout the luxury fashion industry. In a revealing will drafted earlier this year, Armani instructed his heirs to either sell his storied fashion brand, which he had built over five decades, or to pursue a market listing. This significant shift marks a departure from his long-standing position on maintaining the brand’s independence and strong Italian heritage.
Key Takeaways from Armani’s Will
Division of the Armani Group
Armani’s will outlines the division of the Armani Group between his immediate family and the Armani Foundation—established in 2016 to uphold the designer’s legacy. Notably, the will specifies that his heirs must sell a 15% stake in the Armani Group within 18 months of his death, with an additional 30% to 54.9% stake earmarked for sale to the same buyer within three to five years.
Potential Buyers Named
The document highlights that priority should be given to three major luxury entities: LVMH, L’Oréal, and EssilorLuxottica. These selections have raised eyebrows in the Italian fashion community, as they represent a notable shift toward French ownership.
If a deal with these companies—or another of equal stature—fails to materialize, Armani indicated in his will that a public stock market listing would be a backup plan.
Focus on the Armani Foundation
The Armani Foundation is set to retain a 30.1% share in any potential sale or market listing. In a statement, the executive committee mentioned that the foundation will remain a stabilizing entity for the company’s core values, ensuring compliance with the founding principles, which emphasize ethical operations, innovation, quality, and a modern, elegant style.
LVMH: The Likely Candidate for Acquisition
Amid the potential buyers, LVMH seems to be in the strongest position to acquire stakes in the Armani brand. Bernard Arnault, the billionaire behind LVMH, expressed his appreciation for Armani naming them as a potential partner, stating their commitment to strengthening their global presence.
The luxury conglomerate, with a staggering market value of approximately €240 billion, has long shown interest in expanding its portfolio with an Italian heritage brand like Armani. Analysts suggest that LVMH’s strategic fit makes them the most likely candidate to acquire the luxury fashion house.
Who Stands to Inherit?
With a reported net worth of $11.8 billion at the time of his death, Armani’s heirs include his sister Rosanna, his nieces Silvana and Roberta, his nephew Andrea Camerana, and his partner Leo Dell’Orco. While Dell’Orco is set to control the largest share (30%) and a significant amount of voting rights, the rest of the family’s shares will consist of a 15% stake each for Rosanna, Silvana, and Roberta, who will lack voting privileges.
The Armani Foundation is allocated a smaller 10% share of the company, with 30% of the voting rights. Notably, Dell’Orco’s shares will be sold at an accelerated pace compared to the rest of the family, ensuring leadership continuity for the Armani brand.
Real Estate and Other Assets
In addition to the fashion empire, Armani’s extensive real estate portfolio is bequeathed to his sister and nieces/nephew. Significant properties in exclusive locations such as Saint-Tropez, St. Moritz, and the islands of Antigua and Pantelleria will continue to be under Dell’Orco’s control for his personal use.
Conclusion
Giorgio Armani’s will reflects not just his legacy as a fashion icon, but a pivotal moment for the future of one of Italy’s most prestigious brands. As the fashion world watches closely, the decisions made by his heirs in the coming months will shape the next chapter of the Armani story—whether through a sale, partnership, or public offering. This unfolding drama continues to captivate the luxury fashion industry, signaling a significant shift in the realm of Italian luxury.
For updates on the fate of Armani’s empire and its implications for the luxury market, stay tuned.
