Farewell to Giorgio Armani: a Sealed Legacy

Milan is in mourning for ‘Re Giorgio’ (King Giorgio in English). His funeral will be held today in his native village of Rivalta, near Piacenza, Italy, in the presence of a very small number of his closest friends and family. While Armani wanted a quiet farewell, the business world is in turmoil over rumours about the group's future.

While the French press is discussing the possibility of a takeover by a foreign group or bringing LVMH's interest in the Armani empire back to the table, the Italian press is rather unanimous: Armani will remain Italian, autonomous and independent, in accordance with the wishes of the designer, who had put in place a well-defined strategy before his death to protect his empire.

A foundation with extensive powers, a board of directors chaired by members of his family and his most loyal colleagues: Giorgio Armani had laid the foundations for the future of the company. He had orchestrated a complex, multi-level plan to ensure the group's stability. In a fashion world characterised by the presence of large international groups that tend to monopolise the market, Armani has always been an exception.

In 2016, “Re Giorgio” created the Giorgio Armani Foundation, an organisation at the heart of the group's decisions and actions, a powerful legal entity with strong powers of control and guidance, whose aim is to protect the integrity of the brand. The Armani Foundation holds 12.6% of the capital, with the remainder distributed evenly among family members and close associates, such as his right-hand man and partner Leo Dell'Orco, and Andrea Camerana, who is responsible for the company's sustainable development. The Foundation's statutes require its members to respect the designer's vision, doing everything possible to prevent sales and mergers with outside companies.

The statutes in question divide the partners into several categories from A to F. A partners will hold 30% of the capital, F partners 10%, and all others 15%. According to the statutes, A+F will have decisive powers regarding the company's strategic choices and will represent 53% of the votes at meetings. They will also have the power to appoint directors, from among whom the chairman and managing director will be chosen.

At present, the identity of the beneficiaries of the A and F shares has not yet been revealed. It will only be disclosed when the will is opened, revealing the details of the distribution of shares and stock.