Gulf Times

Giorgio Armani's death leaves a vacuum at the top of his billion-dollar luxury business, an independent empire he built up over 50 years spanning hotels to haute couture.Born into a modest family in northern Italy, Armani, who died on Thursday aged 91, became one of the richest men in the world and the fourth richest in Italy.His net worth was estimated at $11.8bn, according to *Forbes magazine.From his historic headquarters in Milan, Armani led an empire employing more than 9,000 staff at the end of 2023, and with revenues of €2.3bn ($2.7bn) in 2024, according to the group.More than 600 stores worldwide sell Armani brands under several lines: Giorgio Armani, Emporio Armani, A|X Armani Exchange, and EA7.The group also licenses eyewear from EssilorLuxottica, and perfumes and cosmetics from L'Oreal.Armani is also active in the hotel, restaurant and real-estate industries, with building collaborations in China, Miami and Brazil.A sports enthusiast, the designer owned the Olimpia Milano basketball team and designed formalwear for Juventus and the Italian national football team.Armani had no direct heirs, but he had long planned for his succession, keen for the integrity and independence of the group to outlast him.According to the Italian press, a new statute has been ready since 2016 for his death. It would see the creation of six classes of shares with specific voting rights and governance prerogatives.In this new structure, a central role is expected to be played by the Giorgio Armani Foundation, which holds 0.1% of the Armani group's capital, and by the designer's close relatives and friends.These include his nieces Silvana and Roberta Armani, his nephew Andrea Camerana, his sister Rosanna Armani, and his right-hand man Leo Dell'Orco."I would like the succession to be organic and not a moment of rupture," he told the *Financial Times in an interview published just days before his death."My plans for succession consist of a gradual transition of the responsibilities that I have always handled to those closest to me," he said, "such as Leo Dell'Orco, the members of my family and the entire working team".Armani owned numerous properties in Italy and abroad. In addition to his main residence in Milan, on Via Borgonuovo, the designer regularly sought refuge in his villa on the island of Pantelleria, in his summer residence in Forte dei Marmi, an upscale seaside resort in Tuscany, or in his "Villa Rosa", south of Milan.He had numerous other residences abroad, notably in France — in Paris and Saint-Tropez — and in Saint Moritz, Switzerland.A few days before his death, Armani completed the acquisition of the "Capannina di Franceschi", the legendary Forte dei Marmi club where he met his partner Sergio Galeotti, with whom he went on to found Giorgio Armani in 1975.Armani remained one of the few independent luxury groups, at a time when most designers were being bought out by conglomerates.After years under Armani's tight control, his death raises the question of what happens next to a company so closely associated with one man.Luca Solca, analyst at research group Bernstein, said the Armani group benefited from being "a little more universal" than others, attracting a wide audience, much like Ralph Lauren."There is certainly a lot of interest in acquiring the group — it remains to be seen if there are any sellers after the succession," he told AFP.It is a difficult time for the luxury industry, hit by slowing growth in China and the uncertain global economic outlook.The Armani group has not been spared, reporting a 6% drop in revenue in 2024.But Armani kept investing — €332mn over the year — notably renovating its stores in New York and Milan and opening a new one in Paris.It has also taken its online sales operations in-house."I am convinced that pursuing consistency and continuity, avoiding chasing immediate gains, is the best strategy to ensure success in the long run," Armani said this year.