Exclusive: Sources Say Armani Approaches Potential Buyers for Stake Sale

Representatives of Armani have reached out to potential buyers regarding the sale of a minority stake in the iconic Italian fashion house, three sources told Reuters. Just weeks after the designer’s death, one of the world’s most renowned fashion empires is effectively opening the door to fresh investment through a partial auction.

According to two people, L’Oréal (OREP.PA) is among the companies approached. A source and a fourth person noted that private equity bidders have not yet been shortlisted as potential buyers. Two sources also said Rothschild is expected to advise on the deal, with the group linked to Armani through partner Irving Belotti, who sits on the board of the Armani Foundation.

However, one source cautioned that discussions remain at an early stage and any progress could take months.

Armani’s Will Directs Heirs to Sell Stake Within 18 Months

It remains unclear who initiated the outreach on behalf of the company, and all four sources spoke on condition of anonymity as the matter is private. Armani Group and Rothschild declined to comment, while L’Oréal — which has a licensing agreement with Armani until 2050 — did not respond to requests for comment.

In his will, the late Italian designer Giorgio Armani instructed his heirs to sell an initial 15% stake in the fashion house within 18 months of his death. The will further outlined the option of transferring an additional 30–55% stake to the same buyer or pursuing a market listing.

The will stated that preference should be given to luxury conglomerate LVMH <LVMH.PA>, beauty giant L’Oréal, and eyewear manufacturer EssilorLuxottica <ESLX.PA>, all of which have existing business partnerships with the fashion house. It also allowed for the sale to another “equivalent-status” group identified by the Armani Foundation, created with his business and life partner, Pantaleo Dell’Orco, to safeguard his legacy.

All three named companies have previously signaled that they are open to exploring a potential deal.

Published last month, shortly after Armani’s passing on September 4, the will also lists six different classes of shares with varying voting rights. The charitable foundation and Dell’Orco hold 30% and 40% of the voting rights respectively, together controlling 70% of the group. The foundation is required to retain a 30.1% stake in any listing or sale.

Dell’Orco, who also served on the foundation’s executive committee, could not be reached for comment. A representative of the Armani Foundation declined to comment by email.

Brand Could Be Valued Up to €12 Billion

Giorgio Armani was the sole major shareholder of the company he founded over 50 years ago, maintaining tight creative and managerial control throughout his life.

The potential sale process is being closely watched, as Armani is one of the most prestigious brands in global fashion. Analysts estimate the brand’s value could range between €5 billion and €12 billion ($14 billion).

Under Italian notarial law, the provisions of Armani’s will are legally binding and can be challenged in court if not adhered to.

($1 = €0.8517)