Armani representatives approached potential buyers for a minority stake in the renowned Italian fashion group, three sources told Reuters. The move effectively launched an informal auction for part of one of the world’s most renowned fashion empires, just weeks after the designer’s death.
Armani explores minority stake sale as heirs follow late founder’s will – Reuters
L’Oréal is among those approached, two of the people said. The sources added that the company has not yet solicited private equity bidders as potential buyers.
Two of the sources said Rothschild expects to advise Armani on the transaction. The group maintains a link to the advisory firm through Irving Bellotti, a Rothschild partner who sits on the board of the Armani Foundation.
One of the people said the talks remain at an early stage and warned that negotiations could take months to advance.
Armani instructed heirs to sell stake within 18 months
Reuters could not confirm who conducted the outreach on behalf of the sellers. The four sources requested anonymity because the matter remains private.
Armani Group and Rothschild declined to comment. L’Oréal, which holds a licensing agreement with the Armani Group until 2050, did not respond to requests for comment.
In his will, late Italian designer Giorgio Armani instructed his heirs to sell an initial 15% stake in the fashion house within 18 months of his death. He directed them to transfer an additional 30% to 55% stake to the same buyer or pursue a market listing afterward.
The will gives priority to luxury conglomerate LVMH, beauty leader L’Oréal, and eyewear maker EssilorLuxottica, with which Armani has an ongoing commercial partnership.
The foundation Armani established to preserve his legacy may also offer the stake to another group of “equal standing,” provided it secures the agreement of Armani’s business and life partner, Pantaleo Dell’Orco.
All three named companies have issued statements indicating their openness to a potential deal. The will, published last month following the designer’s death on Sept. 4, lists six classes of shares with varying voting rights.
The charitable foundation and Dell’Orco hold 30% and 40% of the company’s voting rights, respectively, meaning they jointly control 70% of the fashion group. The will states that the foundation will retain a 30.1% stake in the company, both in the event of a listing and a sale.
Dell’Orco, who also served on the foundation’s executive committee, could not be reached for comment. A representative for the Armani Foundation declined to comment via email.
The brand could be worth up to 12 billion euros
Giorgio Armani served as the sole major shareholder of the company he founded 50 years prior and maintained tight control over its creative and managerial aspects.
Analysts estimate the brand could be worth between €5 billion and €12 billion ($5.5 billion to $14 billion), making the potential sale one of the most closely watched events in the fashion industry.
The provisions in Armani’s will are legally binding, and the Italian notary association notes they could face legal challenges if not fulfilled.
Estee Lauder was sued by a self-described “disruptive” startup that accused the cosmetics giant of effectively putting it out of business by stealing technology to boost sales from jet-setting travellers in hotels.
Nomi has accused Estee Lauder of stealing its technology – Bloomberg
In a complaint filed on Friday night in Manhattan federal court, Nomi Beauty said Estee Lauder has been “driving literally billions in new revenue” to itself after abandoning contracts in 2018 and 2020, including means to determine consumers’ actual preferences for cosmetics instead of their stated preferences.
Nomi- the name is a homophone for “know me,” as in the customer- said its “secret sauce” was intended to help the parent of Clinique and MAC lipstick generate more revenue from luxury hotel duty-free shops and in-room purchases, and become less dependent on traditional retail stores. Rather than honour its contracts or follow through on discussions to purchase Nomi outright, Estee Lauder allegedly starved Nomi’s hotel partners of products, while rolling out competing programs in China, Costa Rica, Malaysia, the UK and the US.
These programs “rely on the very same trade secrets Nomi had been educating Lauder about for years,” the complaint said. Nomi is seeking unspecified compensatory, punitive, and triple damages. Estee Lauder did not immediately respond to requests for comment.
“Nomi’s stolen innovations brought Estee Lauder into the information age, and Estee Lauder continues to profit from them wildly,” Nomi’s lawyer Matthew Schwartz said in an email. Both companies are based in New York.
Since last February, Estee Lauder has pursued a “Beauty Reimagined” strategy, including prestige launches and a streamlining of its supply chain, to revive sliding sales. The strategy also called for up to 7,000 job cuts.
Long reserved for women or military dress, brooches adorned men’s chests during Milan Fashion Week, a throwback to a bygone era but with jewellery now signalling individuality, not just status.
A brooch by Dolce & Gabbana – Aleksej Shelikhov- Facebook
From huge flowers or watch brooches at Dolce & Gabbana to pins at Armani, the bling passed from hands to jackets during the fall/winter 2026/2027 shows in the Italian city.
“I like these small details, people have to pay attention to them,” said reggaeton star Rauw Alejandro, in the front row at Prada.
Chinese buyer John Chen, 45, sported a gold brooch in the shape of a triangle, the Milanese brand’s logo, on a green sweater just below his neck. “I started wearing brooches about five years ago. I like to play with them” to personalise outfits, he told AFP.
In Armani’s refined yet relaxed collection, some men sported a tie pin on their jacket lapel, while male and female models wore matching sparkling brooches. At designer Rowen Rose, a large orange stone was used to fasten a green or yellow scarf to a matching sweater.
“It gives an extra touch. It’s a good accessory- it’s become very masculine,” said Fabio Annese, a 26-year-old Milanese interior designer sporting a heart-shaped brooch at Dolce & Gabbana.
Known for its extravagant style, D&G has been selling brooches for men since entering the jewellery world in 2015, and they are “still important in more formal collections,” a spokesperson said. Among their offerings are crosses, crowns, scarabs, and flowers in gold and embellished with diamonds, the last costing a cool 7,500 euros (around $8,800).
The trend is in many ways a return to the past. In Europe, until the 18th century, the “most important” jewellery was worn by men, explained Emanuela Scarpellini, professor of contemporary history at the University of Milan.
Wealthy and powerful men used it as a sign of their status, the glittering accessories often signalling membership of a noble family or a religious order, or military rank. It was only with the rise of the middle-classes and businessmen in the 19th century that came “the idea that men should dedicate themselves to work, with a more sober attitude,” Scarpellini said at the launch of a new Milan exhibition.
“The Gentlemen,” on show at the Palazzo Morando until September, reveals how men’s jewellery since then usually served a purpose, such as watches, cufflinks and tie pins. Nowadays “there’s a new freedom,” as with clothing, said exhibition curator Mara Cappelletti, a professor of jewellery history.
“There are fewer jewellery pieces with a function, and more with a freer choice,” she told AFP. “Many of the objects men wear today were not designed for a male audience,” she said, adding that many were vintage. “The brooch has never been so popular.”
Cappelletti noted that the trend was boosted by singers and actors wearing a lot of jewellery, noting a photograph of Italian singer Achille Lauro sporting a huge white gold and diamond sculpted piece on his chest, with matching earrings. All provided by the jeweller Damiani, which sponsors the pop star.
Global beauty business Sephora has announced a strategic, omni-channel partnership with Korean beauty and health retailer CJ Olive Young to bring a wide range of K Beauty products to its global customers.
CJ Olive Young aims to bring K Beauty to global shoppers – Olive Young
The partnership will debut this autumn with omni-channel partnerships set for the US, Canada, Hong Kong SAR, and Southeast Asia (Singapore, Malaysia, Thailand), Sephora announced in a press release on Tuesday. In 2027, the business will bring the tie-up to the Middle East, the UK, and Australia.
“Korean beauty is one of the most innovative, fastest growing, and desirable categories in beauty right now,” said Sephora’s global chief merchandising officer Priya Venkatesh in a press release. “Sephora was the first major retailer to debut K Beauty brands to North American consumers in 2010, and our portfolio has grown into a global business. We are thrilled to partner with leading Korean beauty retailer Olive Young, bringing their expertly curated assortment of Korean beauty brands to our beauty fans globally. Their differentiated assortment, coupled with Sephora’s unique point of view on the beauty shopping experience, will bring an unrivalled and inspiring offer for all beauty lovers who are keen to explore the most sought-after Korean beauty products.”
Sephora shoppers will be able to browse a dedicated zone curated by CJ Olive Young comprising popular Korean health and beauty brands. The business’ beauty advisor will also offer guidance and assistance to customers to help them find their desired products.
“We are pleased to enter this partnership with Sephora as we continue to advance our global expansion strategy,” said CJ Olive Young’s chief strategy officer Youngah Lee. “As global interest in K-beauty continues to accelerate, we see this collaboration as a meaningful opportunity to work together in expanding the reach of Korean brands in key international markets.”
Politics8 years ago