After Armani: what becomes of the fashion empire he built?

What becomes of the fashion empire he built?

MILAN — Designer Giorgio Armani established one of the world’s best-known fashion brands over the past five decades, and his death inevitably raises questions about the future of an Italian company whose independence he cherished.

Armani, who helped to put Italy at the forefront of global fashion and dressed Hollywood stars, has died at the age of 91, the company that he founded and led for five decades said on Thursday.

“With infinite sorrow, the Armani Group announces the passing of its creator, founder, and tireless driving force: Giorgio Armani,” the fashion house, which has remained proudly independent for 50 years, said in a statement.

“We, the employees and the family members, who have always worked alongside Mr. Armani, commit to protecting what he built and to carrying his company forward in his memory, with respect, responsibility, and love,” it added.

The designer had been unwell for some time and was forced to drop out of his group’s shows at Milan’s Men’s Fashion Week in June, the first time he had missed one of his catwalk events.

Armani was the sole major shareholder of the company he set up with his late partner Sergio Galeotti in the 1970s and over which he maintained a tight rein — of both the creative and managerial aspects — until the very end.

He has left behind no children to inherit the business, which generated relatively stable revenue of €2.3 billion ($2.7 billion) in 2024, but whose profits had shrunk amid a broad industry recession.

Despite the slowdown, the company remains extremely attractive, say industry experts like Mario Ortelli, managing partner of luxury advisor firm Ortelli&Co.

“Could Giorgio Armani be an interesting target? The answer is absolutely yes — it’s one of the most recognized brands in the world, with a stylistic vision that is clearly and uniquely defined,” said Ortelli, adding however that a deal in the mid-term would be unlikely.

Over the years, the maker of popular unstructured suits received several approaches, including one in 2021 from John Elkann, scion of Italy’s Agnelli family, and another from luxury brand Gucci, when Maurizio Gucci was still at the helm.

Armani, who industry insiders say was particularly wary of French rivals, repeatedly ruled out any potential deal that would have diluted his control and refused to list his group on the stock market.

He put in place measures to ensure continuity and independence for his business, which he ran with trusted family members and a network of long-time colleagues.

He is survived by a younger sister, Rosanna, two nieces, Silvana and Roberta, and a nephew, Andrea Camerana, with the nieces and nephew all occupying important roles in the group. His right-hand man Pantaleo Dell’Orco is also regarded as a member of the family, and all five of them are possible heirs.

More clarity on his plans may emerge in the coming weeks, when Armani’s will is opened.

SECURING HIS LEGACY THROUGH A FOUNDATION
Giorgio Armani started to think of a plan to guarantee a smooth succession and to retain the company’s independence more than a decade ago, which led him to set up a foundation in 2016.

Its stated aim was to “safeguard the governance” of the Armani Group’s assets and ensure they remained consistent with principles that were “particularly important” to him.

The designer told Italian daily Corriere della Sera in 2017 that such a mechanism was needed to help his heirs to get along and to avoid the group being bought by others or broken up.

The foundation currently holds a symbolic 0.1% stake in the Milan-based group but after his death it was expected to get a bigger share, alongside the other heirs, he said in the same interview.

He also said that three nominees he had designated would run the foundation.

Armani also drafted new company bylaws due to take effect upon his death that outline future governing principles for those who inherit the group.

The bylaws call for a “cautious approach to acquisitions” and divide the company’s share capital into several categories with different voting rights and powers. It is not clear from the document how the different blocs of shares will be distributed.

They also state that any potential stock market listing would require backing from the majority of directors and could take place only “after the fifth year following the entry into force of this statute.”

SMALL BUT BEAUTIFUL
Commenting on past financial results, Armani underlined his determination to continue to develop a business which is relatively small in scale compared with the French giant LVMH and other rivals such as Gucci-owner Kering and Italian luxury house Prada.

“I chose in any case to invest in projects of great symbolic and practical significance, which are fundamental to the future of the company,” he said in the results statement in July.

These investments included the renovation of flagship stores like its Madison Avenue building in New York and Emporio Armani in Milan, as well as spending on the new Palazzo Armani in Paris and taking e-commerce management in house.

Europe generates almost half of the Armani Group’s revenue, a far higher proportion than for other luxury brands, with the Americas and Asia Pacific accounting for around one fifth each.

The group had €570 million in net cash at the end of 2024 after stepping up investments.

ARMANI LIEUTENANTS COULD STEP UP
In his last interview with the Financial Times, Giorgio Armani said he wanted a gradual handover to his closest collaborators and family.

“My plans for succession consist of a gradual transition of the responsibilities that I have always handled to those closest to me… such as Leo Dell’Orco, the members of my family and the entire working team,” he told the FT’s How To Spend It supplement.

At a managerial level, the group will need to fill the chairman and CEO roles that were held by Giorgio Armani himself, with long-term veterans like Giuseppe Marsocci and Daniele Ballestrazzi among possible options.

Picking the right creative structure may be trickier.

Armani’s niece Silvana worked alongside her uncle in designing the women’s collections, while Dell’Orco collaborated with him on the men’s collections.

“Will the company have a single creative director? Or will there be multiple creative leads or line-specific directors? This is something Giorgio Armani has probably outlined in the guidelines that the foundation will implement,” said Ortelli.

ATTENTION TO DETAIL
Known as “Re Giorgio” — King Giorgio in his native Italian — the designer famously oversaw every detail of his collection and all aspects of his business, from advertising to fixing models’ hair as they headed out on to the runway.

The company had been planning an exhibition and other events during Milan Fashion Week this month to honor the 50th anniversary of the company Armani founded with his romantic partner Sergio Galeotti in 1975.

Armani’s minimalist style, particularly for jackets, was an instant success in the United States in the late 1970s and 1980s, particularly among women, who found in his aesthetic a perfect balance of elegance and strength in what was back then still a masculine-led working world.

“His clients usually continued wearing his style for decades. They married into his philosophy, especially professional women,” said Virginia Hill, a dress and fashion historian based in Italy.

REACTIONS, MEMORIES, TRIBUTES
Actress Julia Roberts, who famously wore an Armani men’s suit for the 1990 Golden Globes, posted a picture of herself with the designer on Instagram with a broken heart emoji. “A true friend. A legend,” she wrote.

“He treated everyone as equals and felt at ease among young people. He’d invite us to birthday parties and dinners at his villa in Broni (northern Italy), groups of us: tailors, mailmen, sales assistants,” said Mauro Barbieri, who worked as a warehouse man for Armani in Milan for 32 years.

“He would laugh with us and was really down to earth,” Barbieri told Reuters.

A good friend of the designer, film director Martin Scorsese, said in a statement: “Giorgio was more than a clothing designer. He was a real artist, and a great one — people use the term ‘timeless’ quite often, but in his case it happens to be true. There’s nothing hip or tied to the moment in Giorgio’s designs. They’re genuinely elegant, inside and out, and they aren’t meant to be gazed at on a runway. They’re for people to wear, to enhance their own individual sense of natural elegance.”

An outpouring of praise from his fellow designers was released with the news of his passing.

Fashion designer Valentino Garavani said, “I mourn someone I have always considered a friend, never a rival. And I can only bow to his immense talent, the changes he brought to fashion, and above all to his unwavering loyalty to one style: his own.” Meanwhile, Donatella Versace said, “The world has lost a giant today. He made history and will be remembered forever.” Prada designer Raf Simons called him “a visionary.” Designer Diane Von Furstenberg: “Goodbye and rest in peace caro Giorgio! You have touched so many people with your elegance and will continue to inspire for ever.”

Rivals in the fashion business also chimed in. The French luxury group LVMH pointed out that, “He was the last of the post-war, golden generation of fashion designers who shaped, year after year, the paragons of highest elegance. His legacy will live in the hearts and imaginations of current and future designers for a long time.” The conglomerate’s chairman and CEO Bernard Arnault released his own statement: “He created a unique style, combining light and shadow, that he developed into a large and successful entrepreneurial journey and extended Italian elegance to a global scale. He was also a true friend and admirer of France.”

Kering chairman and CEO Francois-Henri Pinault called Armani “a visionary and remarkable entrepreneur” who “redefined elegance with rigor and independence that marked our era. An undisputed master of Italian couture” who “will continue to inspire entire generations.”

The Prada Group’s Miuccia Prada and Patrizio Bertelli called him “an undisputed protagonist of Italian and international fashion. His enduring contribution will remain forever in the history of fashion and in the memory of all who admired him,” while Ferrari and Stellantis Chairman John Elkann pointed out that he “was a great entrepreneur, a sensitive and refined man of culture, and above all, a mentor and friend to me.”

Fashion House Ferragamo Chairman Leonardo Ferragamo called him “The undisputed master of fashion and a symbol of pure Italian elegance,” and Ermenegildo Zegna Chairman and CEO Gildo Zegna thanked Armani “for his enduring inspiration, for his singular vision of beauty, and for bringing the spirit and culture of Made in Italy to the world.”

Aside from Julia Roberts, other actors also wrote of the man whose work went beyond fabric and sequins. Cate Blanchett said he “leaves a void that is impossible to fill. Not just in the worlds of fashion, art, cinema, theater, architecture and design, but in the hearts of millions of people whose lives he influenced.” Michelle Pfeiffer described him as “kind, generous and loyal. A true pioneer of elegance.”

A funeral chamber will be opened on Saturday and Sunday in Milan, the city he made his home, to allow well-wishers to pay their respects. His funeral will be held on Monday in private. — Reuters