Armani's Partner Dell'Orco to Lead Foundation Guiding Fashion House's Future Sale

The Giorgio Armani Foundation, an entity critical to the Italian fashion house's future and its eventual planned sale, will now be led by Pantaleo Dell'Orco as chair. Dell'Orco, the late designer's business and life partner and close confidante, assumes this pivotal role as confirmed by a document seen by Reuters, underscoring his central position in the company's succession plan.

Dell'Orco inherited the largest portion of the company's assets and the main voting share following Giorgio Armani's passing on September 4th at the age of 91. He will preside over the Foundation's board, alongside one of Armani's nephews and three independent members. The Foundation itself, established by Armani in 2016 and chaired by him until his death, controls 30% of the voting rights of his business empire, with its primary objective being the protection of Armani's enduring legacy. Dell'Orco already controls a significant 40% of the luxury group's voting rights.

The five-member board of the Giorgio Armani Foundation comprises a diverse group. Alongside Pantaleo Dell'Orco, Armani's nephew Andrea Camerana, who holds 15% of the company's voting rights, is a key member. The majority of the board, however, consists of non-family members: Rothschild banker Irving Bellotti, who previously served as a director; Legance lawyer Andrea Silvestri; and Milanese notary Elena Terrenghi. This composition ensures a balance of internal knowledge and external, independent oversight.

The Foundation is set to play a central and influential role in shaping governance decisions and ownership changes at the fashion house. Under its bylaws, all five board members must unanimously approve key strategic decisions, including voting at extraordinary shareholders' meetings of the luxury group. This stipulation ensures that major moves, especially those involving the company's future ownership, require broad consensus and the agreement of the external advisors on the board.

A crucial aspect of Armani's succession plan, unveiled in his will, is the directive for a gradual sale of the firm. The will instructs his heirs to sell an initial 15% stake in the group within 18 months, with priority given to luxury conglomerate LVMH, beauty heavyweight L'Oreal, eyewear leader EssilorLuxottica, or another group of "equal standing" identified by the Foundation and with Dell'Orco's agreement. Subsequently, the heirs are directed to transfer an additional 30% to 54.9% to the same buyer within three to five years, or alternatively, pursue an initial public offering.

Beyond guiding the sale process, the Giorgio Armani Foundation has also been tasked with proposing the name of the fashion group's new CEO. This responsibility, announced by the company's executive committee last month, further underscores the Foundation's extensive influence over both the ownership structure and the future leadership of the iconic luxury brand, ensuring continuity and adherence to the vision of "King Giorgio."