Details of the will of late fashion designer Giorgio Armani have been revealed which set out plans for the succession of his company, Reuters reports.
The will instructs heirs to sell a 15% stake in the Italian fashion house within 18 months and later transfer an additional stake to the same buyer between three and five years after his death, or pursue an initial public offering, the news agency said, citing the will.
Newsweek contacted the Armani Group by email seeking comment.
Why It Matters
According to Forbes, Armani had a net worth of $12.1 billion. At the cornerstone of his wealth is the Giorgio Armani fashion empire, which was founded in 1975. Before his death, he was both the CEO and sole shareholder of the company.
Shortly before his death, Armani outlined the succession plan of his business during an interview with the Financial Times. He told the outlet, “My plans for succession consist of a gradual transition of the responsibilities that I have always handled to those closest to me … such as Leo Dell’Orco, the members of my family, and the entire working team.”
What To Know
Armani, a visionary designer who transformed global fashion with his understated elegance and business savvy, died on September 4, at the age of 91, his company said.
Armani, who was very private about his personal life, had no children.
The Armani business, which generates more than 2.3 billion euros ($2.7 billion) a year, had expanded into music, sport, and Italian luxury hotels. He was the owner of the Italian basketball club Olimpia Milano, had investments in luxury hotels, real estate holdings, and was the owner of a 200-foot yacht.
Armani noted in the interview with the Financial Times that he wanted his succession to be “organic,” and “not a moment of rupture.”
Reuters reported that the will stipulates that a 15 percent stake should be transferred within 18 months and then an additional 30 percent to 54.9 percent should be transferred to the same buyer between three and five years after his death.
Alternatively, an initial public offering should be pursued, Reuters reported, citing the will.
The will also states that priority should be given to luxury giant LVMH, L’Oreal, EssilorLuxottica or other groups, Reuters reported, adding that heirs should consider other fashion and luxury companies with which Armani’s company has commercial ties for a sale.
As Armani left behind no children to inherit the business, there had long been speculation about what the future of the Armani empire would look like after his passing. Back in 2016, Armani held a meeting to outline what would happen following his death, establishing new statutes for the group and dictating the principles that would define the future of the company.
Beyond his family, his heirs will include his long-term collaborator and right-hand man, Pantaelo Dell’Orco, and a foundation. This foundation was established in 2016 and plays a significant role in the preservation of Armani’s legacy, following a model adopted by the luxury watchmaker Rolex. It is designed to protect the company.
Dell’Orco has worked alongside Armani for over four decades and is currently the Armani Group’s head of men’s style.
All of these people are part of the company’s board of directors, and, under the leadership of Armani’s sister Rosanna, have long been involved in the company’s team.
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