Armani's will: Fashion empire to be sold or go public in the next years

After a lifetime of spurning would-be business suitors, the late Italian designer Giorgio Armani instructed his heirs to sell a 15% minority stake in his vast fashion empire within 18 months, according to his business will posted online on Friday by the Italian daily La Repubblica.

He also demanded that this stake should be sold to either the French conglomerate LVMH, the eyewear giant Essilor-Luxottica, the cosmetics company L'Oréal, or another group of "equal standing".

Later, the will said, an additional 30% to 54.9% stake should go to the same buyer between three and five years after Armani's death. If the sale fails, the group should seek to go public, according to the fashion giant's final wish.

In his will, Armani gave control of 40% of his business empire to his longtime collaborator and head of menswear, Pantaleo Dell'Orco, and another 15% each to niece Silvana Armani, the head of womenswear, and nephew Andrea Camerana.

The Armani Foundation, which he established in 2016 as a succession vehicle, will control the remaining 30%.

The fashion company Giorgio Armani had a turnover of €2.3 billion last year, with more than 10,000 employees and hundreds of shops in 60 countries.

Armani, one of the most recognisable names and faces in Italian fashion, died on 4 September at the age of 91. Two wills, one for his business empire and the other for his private property, were deposited with Italian tax authorities on Thursday, before it was widely reported by Italian media on Friday.

The designer's estate is estimated to be worth between €11 and €13 billion. It includes villas, yachts, works of art, holdings in large multinationals and his iconic company, which he founded 50 years ago. Armani had no direct heirs.

Giorgio Armani and EssilorLuxottica

Armani also held a 2.5% stake in EssilorLuxottica, the French-Italian multinational eyewear specialist, worth around €2.5 billion. 40% of the shares went to Dell'Orco and 60% to family members.

EssilorLuxottica said in a statement that it would consider a possible deal, Reuters reported, citing a spokesperson: "Together with the board we'll carefully assess such a development prospect given the deep ties already existing between the two groups."

Armani's properties

Giorgio Armani left 75% of L'Immobiliare Srl, the company that owns his villas in Saint Tropez, Antigua, Broni and Pantelleria, to his sister Rosanna, and nephew Andrea Camerana and niece Silvana Armani.

The designer’s companion Dell'Orco will have the right to use Armani’s Milan residence on Via Borgonuovo for life. Armani has specifically indicated that the paintings and furniture in the house 'will not be removed from where they are', with the exception of a work by Matisse and a photo by Rayman, which are assigned to his sister Rosanna. The use of one of Armani's New York homes was assigned to Michele Morselli, a friend of the designer and managing director of 'L'Immobiliare Srl'.

The guidelines: essential style and moral integrity

Armani also clearly indicated what the principles should be for guiding the company. These include managing the company "ethically, with moral integrity and fairness" and "the pursuit of an essential, modern, elegant and unostentatious style".