What will happen to Giorgio Armani's multi-million dollar inheritance?

BarcelonaI read in a—as always—meticulously written piece by Sílvia Rosés in the ARA that Giorgio Armani had been out of the "creative storm" for years. That was true. And given what we've been seeing for some time now, he's still in luck. Rosés's was a nice way of saying that the Milanese brand didn't become a trend day in and day out, producing absurdities designed solely to garner social attention. He continued doing what he had always done: adapting elegance to the present with high standards of quality and nods to modernity, if not to the avant-garde. This had been his formula since he founded his brand in 1975 with Sergio Galeotti, the first great love of his life and partner in the genesis of the firm. In fact, very poetically, the genius's last major acquisition before his death was the Forte dei Marmi nightclub where he had met Galeotti, who died prematurely in 1985, just over 40 years old, from complications arising from AIDS.

Armani's creative formula was never exhausted because he had an innate talent for detecting current aesthetics and mixing them with his sober and chicAnd that, while seemingly obvious, is a great achievement, as there are countless designers who view their aesthetics as a fossil, who are impervious to incorporating contemporary elements into their creations, who have such a rampant ego that they believe their aesthetics are the philosopher's stone, and any new contribution is not about improving them but for the sake of improving them. Armani, a multifaceted genius who not only dominated the field of aesthetics but also business, was one of the first to begin subdividing his brand into several lines and to create other divisions outside of fashion to maximize the power accumulated by his surname. Thus, he had a subdivision of his brand that ranged from the haute couture of Armani Privé to the sportier line of EA7, which ended with that number in homage to the Ukrainian AC Milan striker Andriy Shevchenko. Outside of fashion, he had a furniture and home decor line, hotels, restaurants, and a beauty line. emporium which only grew over the 50 years of life that the creator of Piacenza gave to his emblem.

In this context, Armani amassed an immense fortune, which some media estimate to be between $12 and $13 billion. A figure that would have been much higher had the designer not resisted the brand's IPO until his death. He was able to maximize his wealth, but he would have lost some control, something that someone as perfectionist as he could not conceive. In one of the many interviews he gave throughout his life, he had said that the key to achieving excellence was simply to work hard and delegate as little as possible. In fact, those of us who were able to speak at length with people who knew him closely also explained this. Everyone knew that if he walked down the street and passed one of his 600 stores around the world and saw something in the window he didn't like, he would go in and replace it. And so on.

Through this aesthetic and entrepreneurial path, Armani became, on the day of his death, one of the richest Italians, ranked between third and fifth according to the media that compiled the list. This accumulation of wealth was held by him in a singular way, as 99.9% of the shares in his empire belonged to himself and the remaining 0.1% belonged to the Giorgio Armani Foundation, which he founded in 2016 in Milan for various purposes. According to records since then, the entity aims to preserve Armani's creative and cultural legacy, manage the transition and future of the Armani group after his death, and, finally, support philanthropic projects in areas such as education, scientific research, the arts, and social causes.

The heirs (and their duties)

For all these reasons, the main custodian of his inheritance will be his foundation, as the Italian media have explained after the disclosure this week of the distribution of the estate made by the designer in his will, consisting of two handwritten documents deposited with a Milanese notary in March and April. The real question, therefore, is who will direct it. According to these media, the Foundation will be mainly run by Pantaleo Dell'Orco, the designer's right-hand man for decades and his last partner, to whom they were not married. Also present will be his nephew Andrea Camerana, his nieces Roberta and Silvana Armani, and the executive director of Rothschild Italia, Irving Bellotti. In fact, in one of his last interviews, given to Financial Times, had already presented Dell'Orco as the man who was to lead the transition after his death, a question that always interested the fashion media and about which he died in silence.

It is known that King Giorgio, as he was known within the industry, rejected takeover offers from large conglomerates for much of his fifty-year career. Therefore, it has been so surprising within the industry that the designer stipulated in his will that the heirs must sell 15% of the Armani Group within 12 to 18 months of the will being made to a major group with which Armani had a partnership. For example, L'Oreal or Essilor Luxottica. Armani also stated that in subsequent years, the heirs—that is, his foundation—will have to sell up to 54.9% of the shares. This will allow the foundation to always retain a significant 40% stake in the group, enabling it to be decisive in setting the direction of the brand and upholding the designer's founding principles. The will also stipulates that no strategic decision may be made without the consent of Dell'Orco or, if he is no longer alive, that of his nephews.

Beyond the company, there is a significant estate to be distributed. For example, he left Dell'Orco a large portion of the shares he owned in the eyewear company Essilor Luxottica, a sum valued at €2.5 billion. With this package, he also considered friends and collaborators, to whom he has left part of this substantial legacy. His real estate properties scattered around the world—St. Moritz, Antigua, New York, Milan, and Saint Tropez—will go to Camerana, son of Rosanna Armani, Armani's still-living sister at 86, from whom he will also inherit; and to his two nieces, Roberta and Silvana Armani, daughters of Sergio Armani, the designer's late brother. For now, they will inherit only the bare ownership because until Dell'Orco's death, he will be able to enjoy them as he wishes.

Together, they will have to manage a firm that sought to remain independent, as Chanel and Hermès have done in France, and as Prada and Armani have so far only succeeded in Italy. They will also have to breathe new life and new vision into the designer's collection of private properties that so well illustrated the conceptual significance of the Armani name: the Maìn yacht, his dreamlike dammusi in Pantelleria, the Orsini Palace in the heart of Milan's Quadrilatero, the Armani/Silos Museum, and the Armani Theater. This man's capacity for work and success have been incredible. What a pleasure to inherit his heritage, what a challenge to inherit his legacy.