MILAN, Sept 13 — Giorgio Armani, the renowned fashion designer who passed away last week at the age of 91, has left behind a surprising final instruction for his empire.
In a move that shocked the fashion world, Armani’s will directs his heirs to gradually sell the company he built over a 50-year career.
Much like his meticulous approach to design and business, the “king of fashion” left nothing to chance in his final wishes, according to a Reuters report.
Armani’s foundation and partner to control company
The designer’s will stipulates that the Giorgio Armani Foundation, which he established in 2016, will initially hold a 10 per cent direct stake in the company.
This will give the foundation 30 per cent of the voting rights and the option to acquire other shareholders’ stakes should they pass away.
The remaining shares will be distributed among his partner, Pantaleo (Leo) Dell’Orco, his sister Rosanna, his two nieces Silvana and Roberta, and his nephew Andrea Camerana.
Dell’Orco will receive the largest portion of capital and voting rights, with a 40 per cent share. Together with the foundation, he will control the fashion label.
Proceeds from the company will be divided among his partner and family members based on their shareholding, with the foundation’s 10 per cent equally paid to the five family members.
The sale of the company
The will instructs the foundation to sell 15 per cent of the fashion house within 18 months. It gives priority to three potential buyers: French luxury conglomerate LVMH, beauty giant L’Oreal, and Franco-Italian eyewear group EssilorLuxottica.
If none of these companies buy the stake, it should be sold to a company of similar standing in the fashion and luxury world, as identified and agreed upon by Dell’Orco.
The buyer will receive 15 per cent of the voting rights and a seat on the board. After this sale, Dell’Orco will maintain his 40 per cent voting rights despite a smaller holding, while the foundation’s voting rights will drop.
In three to five years, Armani’s heirs are instructed to sell another 30 to 55 per cent of the company to the same buyer or to list the company on a stock exchange, preferably in Milan.
The will mandates that the Giorgio Armani Foundation must always hold at least a 30.1 per cent stake in the company, regardless of the decision. Under Italian law, these provisions are legally binding and can be challenged in court if they are not followed.
EssilorLuxottica shares distributed
Armani's stake of just over two per cent in the Franco-Italian eyewear giant EssilorLuxottica, valued at approximately €2.5 billion (RM12.3 billion), will be split among his family and senior company managers.
Michele Morselli, the head of Giorgio Armani's real estate company, will receive 100,000 shares worth more than €26 million.
Two of the group’s director generals, Giuseppe Marsocci and Daniele Ballestrazzi, along with two other senior managers, will each receive 7,500 shares.
Dell'Orco will get 40 per cent of the remaining shares, while Armani's family members will receive 60 per cent.
