The late designer Giorgio Armani left instructions in his will for his heirs to gradually sell the fashion house he founded 50 years ago or take the company public, reports Baltimore Chronicle with reference to Reuters.
This decision marks the beginning of a battle for control over one of the world’s most famous brands and represents a significant shift for a company that has long preserved its independence and Italian roots.
Giorgio Armani passed away on September 4 at the age of 91, leaving no children to inherit his fashion empire, which industry analysts estimate is worth between €5–12 billion.
The will consists of two documents filed with a notary in March and April of this year. It stipulates that the heirs must sell an initial 15% stake in the Italian fashion house within 18 months of Armani’s death.
Later, they are to transfer an additional 30–54.9% of shares to the same buyer within three to five years after the designer’s passing. Priority for acquiring the shares is given to industry giants: LVMH (Louis Vuitton), L’Oreal, EssilorLuxottica, or another “equal status” group designated by the fund created by Armani to preserve his legacy with the consent of his business partner Pantaleo Dell’Orco.
The explicit mention of selling shares and French publicly traded companies as potential buyers comes as a surprise, given Giorgio Armani’s long-standing refusal to dilute control or take the company public. Alternatively, the second batch of shares may be offered through an initial public offering in Italy or on a market of equal status.
According to the Italian Association of Notaries, such provisions are binding and may be challenged in court if not fulfilled. Armani remained the sole major shareholder of the company, which he founded with his late partner Sergio Galeotti in the 1970s, maintaining strict control over both creative and managerial aspects until the very end.
Earlier we wrote about Armani cosmetics: which products are worth your money?.
