The passing of Giorgio Armani has set a clear path for the future of his eponymous fashion empire.

According to the will disclosed last Friday, the design master who died last week at age 91 designated LVMH Group, L'Oreal Co., and eyewear giant EssilorLuxottica as preferred acquirers for his fashion empire.

The handwritten will, drafted in April this year, instructs heirs to first sell an initial 15% stake of the company to one of the three giants. The will also stipulates that within five years of Armani's death, an additional 30% to 54.9% stake should be sold to the same buyer.

If the sale plan fails, heirs should opt to list the company on capital markets. The group generated approximately 2.4 billion euros in revenue last year, but growth has stagnated amid young consumers' avoidance of formal wear and an overall slowdown in the luxury goods industry.

**Will Requires Phased Sale or IPO**

Armani's will establishes a detailed blueprint for the company's future ownership structure.

Armani instructed his heirs to inherit the company through the Giorgio Armani Foundation and execute this sale plan.

The will explicitly states that besides the three preferred parties - LVMH, L'Oreal Co., and EssilorLuxottica - other existing business partners could also be considered potential buyers. The company's executive committee stated:

"Mr. Armani's intentions are very clear: to ensure strategic continuity, corporate cohesion, and financial stability at every stage for long-term development, consistent with the philosophy he has repeatedly shared with media and close collaborators."

According to the will, if the phased sale approach fails to materialize, a market IPO would become the alternative option. This arrangement provides dual protection for the company's future, aimed at preventing chaos or fragmentation after his death.

**Three Major Potential Buyers Express Interest**

LVMH CEO Arnault has shown strong interest in the acquisition prospect.

He called Armani "the only great fashion designer besides Christian Dior," with the Christian Dior brand now owned by the French group. Arnault stated that if future cooperation materializes, LVMH would be committed to further strengthening Armani's global influence and leadership position.

L'Oreal Co. expressed in a statement that being considered for acquiring shares makes the company feel "moved and honored," and it will carefully study this opportunity. Armani Group has maintained licensing agreements with L'Oreal Co. since 1988 for selling beauty products, including the bestselling fragrance Acqua di Gio.

EssilorLuxottica expressed pride in Armani's attention to the group, stating that potential investment would be "carefully evaluated" by the board. The company currently handles production and distribution of Armani-branded eyewear collections.

Notably, in a 2023 media interview, Armani had expressed determination to avoid acquisition by French luxury groups, as he didn't want to be "dominated by these giant structures lacking personality."

However, two of the three companies specified in the will are French companies, and while EssilorLuxottica was founded by late Italian billionaire Leonardo Del Vecchio, it is also listed in Paris.

**Post-Armani Era**

While potential external buyers emerge, the company's internal power transition has already begun.

According to the will, Leo Dell'Orco, who heads the group's menswear style office, will play a central role in the group's future decisions, receiving 30% of company shares and 40% voting rights.

Other company heirs include nieces Roberta Armani and Silvana Armani, who work at the company, as well as nephew Andrea Camerana, who serves as a company director, and his sister Rosanna. The company stated that the Giorgio Armani Foundation's primary task will be selecting a new CEO for the group.

The new leadership and future owners will face significant challenges.

Although Armani Group's operations remained firmly controlled by its founder until the end, the company's growth has stagnated.

Last year, the group's revenue remained stable at approximately 2.4 billion euros, due to weakening demand from young consumers for the brand's iconic formal wear, while the entire luxury goods industry faces pressure from slowing growth.