Giorgio Armani's $12B empire: Who will inherit what?
What's the story
Giorgio Armani, the legendary Italian fashion designer who passed away on September 4 at the age of 91, has left behind a multi-billion-dollar empire. His will, which was recently published by Italian media outlets, reveals that he wanted the Armani Foundation to sell a 15% stake in his fashion house within 12-18 months. The potential buyers include luxury giants LVMH, L'Oreal, and EssilorLuxottica. The Milan-based designer's net worth was estimated at $11.8 billion at the time of his demise.
Brand preservation
If no buyer found, Armani instructed to list company
The will also stated that the buyer of the initial 15% stake can increase their holding to between 30% and 54.9% over three to five years. If no suitable buyer is found, Armani instructed that his company should be listed on a public stock exchange. The Giorgio Armani Foundation must always retain at least 30.1% of the capital to ensure the brand's guiding ethos is preserved.
Governance structure
Will outlined voting rights of foundation, members
The will also outlined the voting rights of the foundation and its members. Pantaleo "Leo" Dell'Orco, Armani's longtime friend and head of menswear, will receive 40% of the voting rights. Silvana Armani (his niece) and Andrea Camerana (his nephew) will each get 15% voting rights, while the foundation gets 30%. The document emphasizes that the business should continue "in an ethical manner with moral integrity and fairness" while maintaining innovation, excellence, quality, and refinement of product.
Estate distribution
Will detailed real estate empire distribution
Armani's will also detailed the distribution of his real estate empire. His sister Rosanna, niece Silvana, and nephew Andrea have been bequeathed these properties. Dell'Orco has been granted the use of properties in Saint Tropez (France), St Moritz (Switzerland), and on the islands of Antigua and Pantelleria. The foundation will hold 10% of the company's shares and has 30% of the voting rights, with the remainder of the shares in bare ownership, which involves ownership without the right of use.
Succession plan
Foundation to propose successor as group CEO
The will, released last week, also stated that the foundation will propose Armani's successor as the group CEO. According to the company's bylaws, the five-member board of the foundation will be chaired by Dell'Orco. Other members include Rothschild partner Irving Bellotti, Andrea, and two external individuals. The legendary designer had no children and left his entire company to his foundation.