Giorgio Armani's demise/Here's who is expected to lead the fashion empire

2025-09-04 19:43:00, Lifestyle CNA

Giorgio Armani's demise/Here's who is expected to lead the fashion

Italian designer Giorgio Armani founded one of the world's most famous fashion businesses over the past five decades, and his death announced on Thursday inevitably raises questions about the future of a company whose independence he so valued.

Giorgio Armani was the sole major shareholder of the company he founded with his late partner Sergio Galeotti in the 1970s and he has no children to inherit a business, which generated revenue of 2.3 billion euros ($2.7 billion) in 2024.

However, the cautious Armani put measures in place to ensure continuity in a business he ran with trusted family members and a network of old colleagues.

He had a younger sister, Rosanna, two nieces, Silvana and Roberta, and a nephew, Andrea Camerana. The nieces and nephew hold high positions in the group. His right-hand man, Pantaleo Dell'Orco, is also considered a member of the family, and all five of them are likely heirs.

More clarity on his plans is likely to emerge in the coming days, when Armani's will is opened.

However, some of the outlines for the company's future without its founder have already been made public.

Giorgio Armani began thinking about a plan to guarantee a smooth legacy and preserve the company's independence more than a decade ago, which led him to create a foundation in 2016.

Its purpose was to preserve the governance of the Armani Group's assets and to ensure that these assets are maintained sustainably over time in relation to and in accordance with certain principles.

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

The foundation currently holds a symbolic 0.1% stake in the Milan-based group, but after his death it was expected to receive a larger share, along with other heirs, Giorgio Armani said in the same interview.

He also said that three candidates he had designated would run the foundation after his death.

After creating the foundation, Armani also drafted a new company statute that would take effect after his death. The document sets out the future governing principles for those who inherit the group.

The statute divides the company's share capital into several categories with different voting rights and powers. It is not clear from the document how the different blocks of shares will be distributed.

The regulations require a “prudent approach to acquisitions.” They also provide some guidance regarding a potential stock exchange listing, which would require a majority vote of directors after the fifth year of the statute’s effective date.

Over the years, the group has received several approaches from potential investors, including private equity firms, but Armani always ruled out any potential deal.

The Armani Group was closely linked to its founder, who maintained close control over the creative and managerial aspects until the end. On the creative side, his niece, Silvana, worked alongside Giorgio Armani in designing the women's collections, while Dell'Orco collaborated with him on the men's collections. This may have ensured a certain continuity in design.

At a managerial level, the group would have to fill the roles of chairman and CEO held by Giorgio Armani himself.

Among the obvious internal candidates to fill the gap are long-time executives Giuseppe Marsocci, Deputy General Manager and Commercial Director, and Daniele Ballestrazzi, Deputy General Manager and Group Operations and Finance Director.