The Wealth Adviser reported in its recent article, “Giorgio Armani Outlines Succession Plan To Keep House Intact,” that Armani said after he dies, three people he designates will be placed in charge of the foundation he created in 2016 as a succession tool and a vehicle for charitable investments.
Armani said the foundation will be the tie-breaker, if the evenly-numbered board of directors for his business reaches an impasse.
"What we have created stimulates my heirs to remain in harmony and prevents the group from being bought or from breaking up," he said.
The interview didn’t cover who will take over the creative direction of the fashion empire he founded in 1975. The Armani collection now includes the ready-to-wear lines Giorgio Armani, Emporio Armani and Armani Exchange, in addition to the couture line Armani Prive and Armani Casa home decor and furnishings.
His heirs include his nieces, Roberta and Silvana, who both work at the group, and a nephew, Andrea Camerana, who is a board member. Long-time assistant Leo Dell'Orco is in charge of the men's line and also is a member of the board.
"Believe me, it is horrendous to decide what to leave to whom, if it is right or not right. Every five minutes, you are placed in front of a reality of a man to whom something could suddenly happen. This is true of everyone, but more so at 83," Armani said.
Giorgio Armani SpA saw its revenues drop 5% in 2016. Armani remarked that this was because of a long-term strategy to relaunch Armani Exchange and simplify its portfolio. The company plans to return to growth in 2019. He’s never been tempted to follow the path of other Italian brands, which have been purchased by French conglomerates or other foreign investors.
"I don't think it is necessary," he said. "If then you start a discussion of the power that Louis Vuitton has regarding the media or investments, then it's clear that some doubts arise. But I want to be in charge in my house."
Reference: The Wealth Adviser (October 23, 2017) “Giorgio Armani Outlines Succession Plan To Keep House Intact”
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