The will of the legendary Italian designer Giorgio Armani, who died on September 4 at the age of 91, contains a sensational mandate for his heirs. He ordered either to gradually sell a controlling stake in the fashion house he founded or to take the company public. This is a radical reversal compared to his long-standing position aimed at preserving the independence of the company. This was reported on Friday, September 12, by Reuters, which has read the will.
The will outlines a clear two-stage sale plan:
- Within 18 months of the designer’s death, an initial 15% stake should be sold.
- Over a period of three to five years, the same buyer should be given an additional stake of between 30% and 54.9%, which would give him control of the company.
The document also lists potential buyers as priority buyers. They include French giants: luxury conglomerate LVMH, cosmetics company L’Oréal, and eyewear maker EssilorLuxottica.
As an alternative to the sale, the will provides for an initial public offering (IPO), preferably in Italy. In that case, Armani’s foundation, Fondazione Giorgio Armani, should retain a 30.1% stake.
The instructions came as a complete surprise to the market. Giorgio Armani, known as “King Giorgio”, was the only major shareholder of his company and for decades resolutely rejected all offers to sell or go public, seeking to retain complete creative and managerial control.
The heirs, who received 70% of the shares, were Fondazione Giorgio Armani and the designer’s long-time business partner and life partner, Pantaleo Dell’Orco.