Giorgio Armani's Will Leaves Specific Instructions to Heirs, Telling Them To Sell or Seek IPO

Summary

• Giorgio Armani’s will instructs his heirs to sell the brand or pursue an IPO
• The will outlines a phased sale plan, prioritizing luxury giants like LVMH
• His foundation will retain a 30% stake to protect the brand’s principles

In a stunning revelation that has sent shockwaves through the luxury fashion world, the will of late designer Giorgio Armani has instructed his heirs to either sell the brand or pursue an initial public offering (IPO). The decision marks a powerful and surprising turn, as Armani, who passed away last week at 91, had long been a fierce protector of his company’s independence, refusing numerous offers to sell to larger conglomerates.

According to a copy of the will reported by Reuters, Armani has laid out a phased plan for his vast empire. He instructed his heirs to sell a 15% stake in the Italian fashion house within 18 months of his death. After that, within three to five years, an additional 30% to 54.9% should be sold to the same buyer, or the company should be listed publicly. The will gives priority to luxury giants such as LVMH, L’Oréal, or EssilorLuxottica, among other groups of “equal standing.”

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, which the designer set up in 2016, will always hold a stake of at least 30% 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 five decades. Prior to his death the legendary designer was the sole major shareholder of the company that he set up with his late partner, Sergio Galeotti in the 1970s. He has no children to inherit the business.