Giorgio Armani’s will, details of which were made public on Friday, dictates that his fashion brand should be sold to another giant in the luxury sector or listed on the stock exchange.
The great Italian designer, who died aged 91 last week, did not have any children to leave the fashion house to.
Armani directed that his fashion house, Giorgio Armani SpA, be placed under the control of a foundation.
The foundation will directly own 9.9 percent of the company, while the remaining 90 percent will be divided among Armani’s close circle: his long-time partner and right-hand man Pantaleo Dell’Orco, his sister Rosanna, nieces Silvana and Roberta, and nephew Andrea Camerana.
Dell’Orco emerges as the key figure, holding 40 percent of voting rights in the group. The foundation will control 30 percent, while Silvana and Camerana each hold 15 percent. Rosanna and Roberta receive non-voting shares.
The will says that 15 percent of the group’s capital must be sold within 18 months, with LVMH, L’Oreal and EssilorLuxottica named as the preferred buyers.
It said the same buyer should have the chance to acquire an additional 30 percent to 54.9 percent stake to gain control between three and five years after Armani’s death.
Alternatively, the group should be listed on the stock exchange within five to eight years.
The foundation’s stake should not go below 30.1 percent, the will states.
The will says the foundation should manage the company “in an ethical manner, with moral integrity and fairness” and seek “essential, modern, elegant and unostentatious style” while paying “attention to innovation, excellence, quality and product refinement.”
Beyond the fashion empire, Armani left 75 percent of L’Immobiliare Srl — owner of his luxury properties in Saint Tropez, Antigua, Broni, and Pantelleria — to Rosanna, Silvana, and Camerana. Dell’Orco, however, was granted the right to use the villas.