Giorgio Armani’s Will Shocks Fashion World: Sell or IPO?
In a shocking twist, the late designer Giorgio Armani’s will has instructed his heirs to either sell the brand or pursue an initial public offering (IPO). This decision has sent shockwaves through the luxury fashion world, as Armani was known for fiercely protecting his company’s independence and turning down offers from larger conglomerates.
The will, reported by Reuters, outlines a phased plan for the company’s future. Within 18 months of his death, a 15% stake in the Italian fashion house must be sold. Then, within three to five years, an additional 30% to 54.9% should be sold to the same buyer or the company should go public. The will gives priority to luxury giants like LVMH, L’Oréal, and EssilorLuxottica.
But while the will sets a path for a potential sale, it also includes a safeguard to protect the brand’s legacy. The Giorgio Armani Foundation, established by the designer in 2016, will always hold at least a 30% stake in the business. This ensures that the foundation will act as a permanent guarantor of Armani’s founding principles, preserving the timeless style and values that have defined the brand for over 50 years.
Before his passing at the age of 91, Armani was the sole major shareholder of the company he founded with his late partner, Sergio Galeotti, in the 1970s. With no children to inherit the business, his will has set a new course for the future of the iconic brand.
