Armani explores minority stake sale

The latest collection designed by Giorgio Armani was presented in Milan less than one week ago. The management has now reportedly contacted potential buyers for the sale of a minority stake in the fashion group.

This was reported by the Reuters news agency, which cited three sources familiar with the situation. The move has initiated a de facto auction for a stake in one of Italy's fashion empires.

L’Oréal is among the parties contacted, according to two of the sources. One of them emphasised that the talks are still in their early stages and any progress could take months. According to one of the sources and a fourth source, no private equity funds have been approached as potential buyers so far.

Rothschild is expected to be appointed as the company's adviser on the transaction, according to the two sources.

The group has a connection with the advisory firm through Irving Bellotti. Bellotti is a partner at Rothschild and sits on the board of the Armani Foundation, according to the investment bank's website.

The four sources spoke on the condition of anonymity because the matter is private, Reuters also reported.

The Armani group and Rothschild declined to comment. L’Oréal, which has a licensing agreement with the Armani group until 2050, did not respond to Reuters' requests for comment.

Armani's succession has opened the door for a sale to LVMH, EssilorLuxottica, and L’Oréal. The Piacenza-born designer's wishes included both managerial continuity with his managers and family, and the sale of 15 percent to a luxury group within 18 months, followed by a possible full disposal.

Giorgio Armani passed away in Milan on September 4. His death marks the end of a chapter in Italian fashion.

What made him beloved everywhere, however, was his way of being. He reminded everyone that one can be extremely famous, wealthy, and hugely successful while remaining private, never over the top, and kind to everyone. He was a living example of his own saying: “Elegance is not about being noticed, but about being remembered”. He certainly succeeded in that.

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