Armani considering sale of 15 per cent stake to luxury and eyewear groups

Rome — Giorgio Armani’s fashion empire could distribute a 15 per cent stake among three major international groups, according to Italian media reports, as the company begins implementing succession plans outlined before the designer’s death.

Italian daily La Repubblica reported that the Armani group is considering dividing the stake equally between LVMH, L'Oréal and EssilorLuxottica.

The move would reflect indications reportedly contained in Armani’s will naming the three groups as preferred strategic partners and potential investors in the company.

Armani died last September at the age of 91 after building one of Italy’s most influential luxury brands and maintaining unusually tight family control over the business throughout his career.

According to the report, the founder’s succession arrangements stipulated that an initial 15 per cent stake in the group should be sold within 12 to 18 months of his death.

La Repubblica said the company’s chief executive, Giuseppe Marsocci, is preparing a new business plan and is expected to appoint two advisers to oversee the process. The advisers would then present a five year strategic plan to prospective investors.

The newspaper added that the proposal to divide the stake into three equal parts is intended to keep all three groups involved during the first phase of the transition while preserving the company’s balance of power.

L'Oréal already collaborates with Armani on fragrances and beauty products, while EssilorLuxottica produces the brand’s eyewear collections under licence. LVMH, owner of labels including Louis Vuitton and Dior, has long been viewed as a potential consolidator in the Italian luxury sector.

A spokesperson for Armani declined to comment on the reports.

PS