Bidding Begins for Armani's Fashion Legacy

Representatives of the late Giorgio Armani's fashion empire are exploring the sale of a minority stake in the iconic Italian group. L'Oreal has shown interest, while Rothschild may advise on the transaction. The designer's will requires heirs to sell between 15% to 55% within 18 months.

Armani representatives have initiated discussions with potential buyers for a minority stake in the celebrated Italian fashion house, sources revealed to Reuters. This move comes weeks after Giorgio Armani's passing, signaling a de facto auction for a piece of this global fashion powerhouse. L'Oreal is among the potential buyers approached, although private equity firms have not yet entered the fray.

Rothschild is anticipated to serve as the company's advisor during this transaction, insiders said. The advisory firm holds connections within the Armani group, linked through Rothschild partner Irving Bellotti, who also sits on the Armani foundation's board. Despite entering early-stage talks, substantial progress in the sale discussions is expected to take months.

In accordance with the designer's will, his heirs are instructed to sell at least 15% of the fashion empire within 18 months of his demise. The will stipulates preferential consideration for luxury giant LVMH, L'Oreal, and eyewear producer EssilorLuxottica, with whom Armani has commercial ties. The brand's valuation could range from 5 to 12 billion euros, drawing significant attention within the fashion and business sectors.

(With inputs from agencies.)