In surprise twist, Armani’s will sets stage for sale of fashion empire

The late designer Giorgio Armani instructed his heirs to gradually sell the revolutionary fashion house he created 50 years ago or seek a market listing, his will said, setting off a race to control one of the world’s best-known brands and a major shift for a company highly protective of its independence and Italian roots.

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The designer, known in the industry as “King Giorgio,” died on Sept. 4 at 91 with no children to inherit his fashion empire, which industry analysts value at between €5 billion and €12 billion ($5.9 billion-$14 billion).

The will says that priority should be given to luxury conglomerate LVMH, beauty heavyweight L'Oreal, eyewear leader EssilorLuxottica or another group of “equal standing” identified by a foundation the designer set up to preserve his legacy with the agreement of Armani’s business and life partner Pantaleo Dell’Orco.

All three companies named issued statements suggesting they were open to the possibility of a deal.

The explicit mention of stake sales and of France-listed players as potential buyers came as a surprise, given Giorgio Armani’s persistent refusal to dilute his control or list his fashion group, which industry experts say retains appeal despite a global luxury slowdown.

LVMH, controlled by French billionaire Bernard Arnault, said it was honored to be named as a potential partner.

“Giorgio Armani honors us by naming us as a potential partner for the exceptional fashion house he has built,” LVMH’s Mr. Arnault said in a statement. “If we were to work together in the future, LVMH would be committed to further strengthening its presence and leadership around the world.”