What becomes of Armani fashion empire now?

‘King of Fashion’ left no children to inherit his legacy

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 died on Thursday at the age of 91, was the sole major shareholder of the company he set up with his late partner Sergio Galeotti in the 1970s. He maintained a tight rein over both the creative and managerial aspects until the very end.

“He worked until his final days, dedicating himself to the company, the collections, and the many ongoing and future projects,” the Armani company said. The funeral will be held privately, it added. Armani left behind no children to inherit the business, which generated relatively stable revenue of €2.3 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 recognised brands in the world, with a stylistic vision that is clearly and uniquely defined,” Ortelli said, adding however that a deal in the mid-term would be unlikely.

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

Armani, who 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, running the business 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. All occupy important roles in the group. His right-hand man Pantaleo Dell’Orco is also regarded as a member of the family, and all five are possible heirs. More clarity on his plans may emerge in the coming weeks, when Armani’s will is opened.

Armani began to think of succession more than a decade ago, leading 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 “particularly important” to him. He told Corriere della Sera in 2017 that such a mechanism was needed to help heirs get along and avoid the group being bought or broken up. The foundation currently holds a symbolic 0.1% stake but was expected to receive a bigger share after his death.

“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 Financial Times.

New bylaws drafted to take effect upon his death outline governing principles for heirs. They call for a “cautious approach to acquisitions” and divide share capital into categories with different voting rights. Any stock market listing would require majority backing from directors and could take place only “after the fifth year following the entry into force of this statute.”

Commenting on past results, Armani stressed his determination to develop a business “relatively small in scale” compared with giants like LVMH, Kering and 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 July, pointing to store renovations and the new Palazzo Armani in Paris. Europe generates almost half of group revenue, with the Americas and Asia Pacific each around one fifth.

The designer’s legacy

It all began with the jacket. Armani tore out the padding, adjusted proportions and moved the buttons until it became “supple as a cardigan, light as a shirt.” He said years later: “Removing all rigidity from the garment and discovering an unexpected naturalness.”

This 1970s reimagining of the jacket was his statement of purpose: elegance meant simplicity. The principle produced bestselling minimalist suits and turned his name into a conglomerate spanning haute couture, pret-a-porter, perfumes and interiors.