Giorgio Armani's Heirs to Sell 15% Stake in Fashion Empire to LVMH or Rivals

Italian fashion designer Giorgio Armani, who passed away in September, has instructed his heirs to sell a 15% stake in his fashion empire. The sale is to be prioritized to French conglomerate LVMH, eyewear giant EssilorLuxottica, or beauty company L'Oreal, or any other fashion group of similar scale.

According to Armani's commercial will, which was published online by an Italian newspaper, 40% of the controlling stake in his fashion empire is to be handed over to his long-term partner and men's wear division head. Another 15% each is to be given to his niece, who heads the women's wear division, and his nephew. The remaining 30% will be held by the Armani Foundation, which was established in 2016 for the purpose of inheritance.

Armani, who was one of the most recognizable figures in the Italian fashion industry, left behind two wills—one for his business empire and another for his personal assets. Both wills were submitted to the Italian tax authorities last Thursday and widely reported by Italian media on Friday. The Armani Group has not yet commented on the matter.

Armani's wills were both drafted last spring, with some parts handwritten on the back of a brown envelope. Throughout his career, Armani was known for his resistance to potential business acquisitions, even from major players in the industry such as LVMH, Kering, and the Agnelli family. However, his commercial will specifies that the Armani Foundation should sell 15% of the company's shares within one to 18 months after his death, with priority given to LVMH, EssilorLuxottica, L'Oreal, or any other fashion group of similar scale.

His niece, who has long served as a liaison between Armani and red-carpet clients, and his sister, each received 15% of the company's non-voting shares. Armani also held a 2.5% stake in the Franco-Italian eyewear giant EssilorLuxottica, valued at 25 billion euros. This stake will be distributed among his heirs, with 40% going to his long-term partner. This is just a fraction of his vast personal wealth, which includes multiple properties in Milan, New York, Pantelleria Island, and Saint-Tropez.

Armani's final collection for Emporio Armani and Giorgio Armani will be unveiled later this month during Milan Fashion Week, which opens on September 23. A special exhibition will also be held at the Pinacoteca di Brera to commemorate the 50th anniversary of the iconic fashion brand.

In his will, Armani specified that future clothing lines should adhere to a "simple, modern, elegant, and understated design style, while paying attention to detail and wearability."