What's Happening?
Giorgio Armani, the renowned Italian fashion designer, passed away on September 4, 2025, at the age of 91. In his business will, Armani instructed his heirs to sell a 15% minority stake in his fashion empire within 18 months of his death. The preferred buyers include French conglomerate LVMH, eyewear giant Essilor-Luxottica, and cosmetics company L'Oréal. The Armani Foundation, established in 2016, will control the remaining 30% of the company. Armani's longtime collaborator, Leo Dell'Orco, will manage 40% of the business, while his niece Silvana Armani and nephew Andrea Camerana will each hold 15%. The foundation will retain veto power over major decisions, ensuring strategic continuity and financial stability.
Why It's Important?
The decision to sell stakes in the Armani empire marks a significant shift from Armani's previous stance of maintaining independence. This move could reshape the luxury fashion industry, potentially leading to consolidation among major players like LVMH. The sale could also impact the brand's identity and operations, as new stakeholders may influence strategic directions. The Armani Foundation's control ensures that the brand's core values and mission are preserved, providing stability during this transition. The heirs and the foundation will play crucial roles in maintaining the brand's legacy and ensuring its future growth.
What's Next?
The Armani Foundation will prioritize appointing a CEO to guide the company through this transition. The foundation will never hold less than 30% of shares, acting as a permanent guarantor of compliance with Armani's founding principles. Within three to five years, the same buyer should increase its stake to 30% and 54.9%, or a similar share should be publicly floated through an IPO, preferably in Milan. The final Emporio Armani and Giorgio Armani collections designed by Armani will be presented during Milan Fashion Week, marking the 50th anniversary of the fashion house.
Beyond the Headlines
Armani's decision to name LVMH as a preferred buyer is surprising, given his previous resistance to selling to French companies. This move could signal a shift in the Italian fashion industry's dynamics, with potential cultural and ethical implications. The foundation's role in preserving Armani's legacy highlights the importance of maintaining brand integrity amidst corporate changes. The sale could also influence the global luxury market, as major players vie for control of iconic brands.
