Giorgio Armani directs heirs to sell 15% of his fashion empire

In Italy, Giorgio Armani, a distinguished Italian fashion designer, passed away on September 4, 2023, at the age of 91. His will, which became public shortly after his death, outlined a remarkable transition plan for his fashion empire valued at approximately €2.3 billion. Notably, he instructed his heirs to sell a 15% minority stake, prioritizing well-known luxury brands such as LVMH, EssilorLuxottica, or L'Oréal. This sell-off marks a significant shift in Armani's previous reluctance to engage with potential business suitors. The business will, visible online through Italian media, detailed the distribution of his empire's control among family members and collaborators. His longtime collaborator, Leo Dell'Orco, received a controlling share of 40%, while 15% was allocated to each of his niece Silvana Armani and nephew Andrea Camerana. Additionally, his niece Roberta and sister Rosanna were granted non-voting shares. The remaining 30% is under the control of the Armani Foundation, which Armani established in 2016 as a means for succession management. Armani's unexpected decision to permit a stake sale comes after years of maintaining tight control over his empire despite persistent interest from larger fashion groups. He remained a figure transcending the typical business machinations of the fashion world, consistently rejecting overtures from conglomerates like LVMH and Kering. His business will provided a rare glimpse into the designer's evolving approach toward the future of his fashion brand. The will indicates that the planned sale of his stake should not occur before one year and within 18 months of his death, allowing time for a careful consideration of the stake's value and the suitability of potential buyers. This measure reflects a blend of his business acumen and his desire to maintain the essence of his brand following his departure. The fashion industry anticipates that the final collections designed by Armani will be unveiled at Milan Fashion Week, further cementing his legacy. His instructions for future designs echo his lifelong commitment to essential, modern, and elegant fashion, ensuring that his vision will still be present within the collections even after his passing.