In his will, Giorgio Armani asks his heirs to sell the eponymous fashion house incrementally to a large luxury group, such as LVMH, EssilorLuxottica or L’Oréal. Alternatively, an IPO is also an option.
Concrete interest
During his lifetime, Giorgio Armani attached great importance to the independence of his fashion house, but his will now reveals that he did envision a different future after his death. The Armani Foundation may resell an initial 15 % interest to a major luxury conglomerate within 18 months. Armani, who had no children, specifically mentioned LVMH, L’Oréal and EssilorLuxottica as possible buyers, although he did not rule out other similar groups. The same buyer can increase its stake by an additional 30 to 54.9 % after three years, Bloomberg reports.
LVMH CEO Bernard Arnault is said to have been interested in Armani for some time, and cosmetics group L’Oréal also says it will study the will carefully. If a sale does not materialise, Armani asks that his company go public, with his foundation retaining a 30.1 % stake.
Armani also stipulated in his will that his company should be run “ethically, with moral integrity and honesty”, that “the pursuit of an essential, modern, elegant and unobtrusive style” was crucial, along with “attention to innovation, excellence, quality and product refinement.” The fashion designer died on 4 September at the age of 91.
