Armani Outfits Olympics Team While Preparing to Pass Founder’s Torch

The Winter Olympics will begin on Friday, and this year’s opening ceremony may feel more like a runway than usual. That’s only fitting since the event will be held in the fashion capital of Milan. 

US athletes will once again be decked out in Ralph Lauren, Team Brazil will be outfitted by Moncler, Canadians will wear Lululemon and Team Italy will sport Armani on its home turf. The outfits are a show of national pride, typically designed by homegrown brands. In the case of Armani, the partnership underpins the brand’s central role in Italy’s fashion scene. It’s also one of the last collections designed by Giorgio Armani himself before his death last fall.

Fashion’s Future Looks Frencher

The first Armani runway menswear collection without any influence from founder Giorgio Armani debuted to acclaim in late January (the last day of Milan Fashion Week), stoking hopes that the brand’s future remains bright. But Armani cannot continue as is, because the late founder’s will set a clock in motion that started ticking the moment he died:

• Within 12 to 18 months of Armani’s September death, 15% of the company must be sold off, preferably to L’Oréal, LVMH or EssilorLuxottica (ironically, the Italian Armani had previously railed against the idea of an acquisition by one of the French “megastructures” like L’Oréal or LVMH). After three to five years, an additional 30% to 54.9% stake is to be sold to the same buyer, according to the will.
• Alternately, the nearly 50-year-old company could launch an IPO. In any case, 30% of the voting rights, and veto power over major decisions, are to remain with the Giorgio Armani Foundation, which was set up in 2016 to “safeguard the governance assets of the Armani Group.” The Foundation is led by Armani’s business and life partner Pantaleo Dell’Orco, who was himself awarded 40% of the voting rights, ensuring he and the Foundation would together control the fashion house.

Flash Sale: Armani’s imminent selloff comes as Italy is gaining dominance in the fashion industry. Italy’s fashion biz always had clout but not the market cap to compete with companies like LVMH, the parent of Louis Vuitton and Dior. Prada Group could be looking to challenge LVMH, though. With a push from Prada’s likely heir, the company bought ailing Versace last year for $1.4 billion and could be tempted by Armani as another Italian brand, though it would have to get in line behind preferred buyers. Armani’s named heirs will be weighing which buyer, including the public markets, will best preserve the Italian icon’s legacy.