After Armani: what becomes of the fashion empire he built?
Armani firmly controlled Business Empire, Children did not leave
The company rejected the suitors over the years
Purchasing regulations limits and delays the potential stock market list
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Milan, 4 September (Reuters) – Giorgio Armani has established one of the most well -known fashion brands in the world in the last five years, and his death inevitably gives rise to questions about the future of an Italian company in which an Italian company has gained value.
Giorgio Armani, who died at the age of 91 on Thursday, was the only great shareholder of the company he founded with his late partner Sergio Galeotti in the 1970s, and continued a strict reinstatement of both creative and administrative aspects. In 2024, 2.3 billion euros ($ 2.7 billion) did not leave any child behind to inherit the work that provided a relatively stable income, but whose profits have decreased in the midst of an industrial stagnation. Like Mario Ortelli, the executive partner of Ortelli & Co, the luxury consultant company, despite the slowdown, the company remains extremely attractive.
“Could Giorgio Armani be an interesting target?
Over the years, the popular unconfigured suit producer has received various approaches, including John Elkann of Agnelli Scion of Italy in 2021 and the other from the luxury brand Gucci, where Maurizio Gucci is still in the rudder.
Armani said that industrial contentmen were particularly careful against French rivals and repeatedly excluded any potential agreement that would dilute his control and refuse to list his group on the stock market.
He took measures to ensure continuity and independence for his work with a network of reliable family members and long -term colleagues. A little sister Rosanna survived by two nephews, Silvana and Roberta and her nephew Andrea Camerana, and all nephews and nephews invad important roles in the group. Right -hand man Pantaleo Dell’orco is considered a member of the family and five are heirs. In the coming weeks when Armani’s will is opened, more clarity about his plans may arise.
Giorgio Armani began to think of a plan to guarantee a smooth successor and to protect the independence of the company more than ten years ago, which led him to establish a foundation in 2016.
The purpose of the Armani group was to ensure that the assets of the Armani group remained consistent with “especially important” principles for him. In 2017, the designer said that such a mechanism was required to help the Italian Daily Corriere Della Sera to agree on his heirs and to prevent the group from being purchased or disintegrated by others.
The Foundation currently has a share of 0.1% in the Milan -based group, but is expected to take a greater share with the other heirs after his death.
He also said that the three candidates he identified would manage the foundation. Armani also prepared new company regulations as it put into effect the death of future management principles for the groups of inheritance. Regulations require a “prudent approach to purchases” and divide the company’s share capital into various categories with different voting rights and powers. It is not clear how to distribute different stock blocks from the document. They also state that any potential stock market list will require support from the majority of managers and can only be realized after the fifth year following the entry into force of this regulation.
Giorgio Armani, who made a small but good comment about the past financial results, underlined his determination to continue to develop a relatively small business compared to other competitors such as French giant Lvmh and Gucci-Sahin Kering and Italian luxury house Prada.
“In any case, I chose to invest in projects with great symbolic and practical importance for the future of the company,” in every case, “in July.” He said. Among these investments, the renewal of flagship stores such as the Madison Avenue building in New York and the Emporio Armani in Milan, and the spent on the new Palazzo Armani in Paris and the e-commerce management at home. Europe, almost half of the Armani Group’s income produces a much higher rate than other luxury brands, America and Asia Pacific each of them is an account of about five.
After accelerating investments, the group had 570 million euros at the end of 2024 as net cash.
In his last interview, Armani Lieutenant could step into the Financial Times, Giorgio Armani said he wanted a gradual surrender to his closest collaborators and family.
“My plans for succession consists of a gradual passage of the responsibilities that I have always dealt with to those closest to those closest to those closest to me. At the management level, the group will need to fill the roles of the President and CEO organized by Giorgio Armani between long -term veterans such as Giuseppe Marsocci and Daniele Balstrazzi and possible options.
It can be more difficult to choose the right creative structure.
While Armani’s nephew Silvana was working with his uncle while designing women’s collections, Dell’orco cooperated with him in his men’s collections. Ortelli, “Will the company be a single creative director? Or will there be many creative sales or line -specific directors? He said.
($ 1 = 0.8559 Euro) (reported by Elisa Anzolin; by Keith Weir, Ros Russell and Rosalba O’Brien)
