Giorgio Armani’s Will: Fashion Empire to Be Sold
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Giorgio Armani’s Will: Sale or IPO for Fashion Empire
Late designer Giorgio Armani instructed heirs to gradually sell the fashion house he created 50 years ago or seek a market listing, his will said, setting off a race to control one of the world’s best-known brands and a major shift for a company highly protective of it’s independence and Italian roots.The designer, known in the industry as ”King giorgio“,died on Sept 4 at 91 and with no children to inherit his fashion empire, which industry analysts value at between five billion and 12bn euros ($5.9bn-$14bn).
The will, comprising two documents filed with a notary in March and April this year, states heirs should sell an initial 15 per cent stake in the Italian fashion house within 18 months of Armani’s death. They should later transfer an additional 30 to 54.9pc stake to the same buyer between three and five years after the designer’s death.
Preference for French firms
The will also says that priority should be given to luxury giant LVMH, beauty heavyweight L’Oreal, eyewear leader EssilorLuxottica or another group of “equal standing” identified by a foundation the designer set up to preserve his legacy with the agreement of Armani’s business and life partner Pantaleo Dell’Orco.
The explicit mention of stake sales and of France-listed players as potential buyers comes as a surprise, given giorgio Armani’s persistent refusal to dilute his control or list his fashion group, which industry experts say retains appeal despite a global luxury slowdown. as an alternative to the sale of the second tranche of shares, an initial public offering should be pursued, in Italy or in a market of equal standing, the will said.
These types of provisions are essentially binding and could be challenged in court if not fulfilled, according to the Italian notary association. EssilorLuxottica, controlled by the heirs of Italian entrepreneur Leonardo Del Vecchio and with commercial ties to Armani, said in a statement it would consider a possible deal. French