The future of Armani is now mapped out: either a sale or a stock market listing. This is what was written into his will by Giorgio Armani himself, who named LVMH, L’Oréal and EssilorLuxottica as his three preferred successors in ownership. It is a surprising twist, given that the late “King Giorgio” had previously rebuffed every approach.
The future of Armani is set
Giorgio Armani fashion house will pass entirely into the hands of the Armani Foundation. The will stipulates that, after 12 months and within 18 months of the will being opened, a 15% stake in the group must be sold. The preferred buyers are LVMH, EssilorLuxottica, L’Oréal or another leading fashion company with which Giorgio Armani already has a partnership. The decision will rest with the Foundation. But there is more: Armani also set clear rules for the path to follow.
After the initial 15% sale, between the third and fifth year following the opening of the will, the Foundation will have to sell a further 30% of the company, up to a maximum of 54.9%. As Corriere della Sera summarises, within the next five years 70% of Giorgio Armani (15% plus 54.9%) will be sold. The remaining 30.1% will stay with the Foundation, which will be responsible for safeguarding the brand’s distinctive style.
Who holds the reins
The decision-making power will lie with Pantaleo (Leo) Dell’Orco (who will control 40% of the voting rights), the Foundation (30%), and Armani’s nephews Silvana Armani and Andrea Camerana (15% each). Giorgio Armani also outlined a plan B: if the sale does not go ahead, the IPO route will be pursued, either in Italy or in another financial hub of equal standing. Even in that case, the Foundation will retain at least 30% of the shares. The will makes it clear that the company will list on the stock exchange between the fifth and eighth year after the opening of the will. According to Reuters, “the will appears in stark contrast with Giorgio Armani’s longstanding refusal to weaken his grip on the company or to float his fashion house on the stock market”.
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- Giorgio Armani opens up to the possibility of selling: “Everything is possible”
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