Giorgio Armani fashion business could be sold
Listen to the story (Hong Kong accent)
Giorgio Armani, the founder of the famous Italian fashion company, Giorgio Armani, recently died. He was 91 years old. In his will, he wrote that his company should be sold or become a public company.
In his will, Armani said that his family should sell a part of the business within 18 months. He wanted them to sell 15% of the company. After three to five years, they should sell even more. This could be between 30% and 54.9% more. The will also says that selling shares on a stock market is another option.
Armani's will also said which companies should buy his business. He wants them to consider LVMH, the large luxury group that owns companies like Dior, LOEWE, and Louis Vuitton. He also mentioned the beauty company L’Oréal and the glasses company EssilorLuxottica. The will says they should also consider other fashion companies that work with Armani.
Armani was the only owner of the company. His foundation, the Fondazione Giorgio Armani, now controls it. This foundation was started in 2016 to protect Armani's values and guide the company's future.
The company’s leaders said that the foundation will always own at least 30% of the company. This makes sure that Armani’s original ideas and values are protected. They also said the foundation will first look for a new leader for the company. The founder’s family and his partner, Leo Dell’Orco, will make all the short-term decisions.
Armani has no children. His sister and family members are his heirs. They all have important roles in the company.
Vocabulary28 words
- Founder
- a person who starts a new company
- Fashion
- the style of clothing and how people dress; related to clothes
- Will
- A paper/document that says what should happen to a person's money and things after they die
- Public company
- A company that anyone can buy a small part of; a company that is on the stock market/stock exchange
- Part
- a piece of something; a section of a whole thing; not the whole thing
- Within
- in a certain amount of time; before an end time
- Even
- Also, or in addition to something else
- Share
- A unit of ownership in a company; a small piece of a company that people can buy and sell; “stock”
- Stock market
- a market where stocks (pieces of ownership in a company) are bought and sold (New York Stock Exchange ‘Wall Street’)
- Option
- A choice between two or more things
- Consider
- to think about carefully; to take ‘something’ into account when thinking or deciding;
- Luxury group
- A company that owns many expensive and special brands
- Own
- To have something that belongs to you; To have something as yours; something is yours
- Mention
- to briefly or quickly talk about something; to say something, but not talk in detail about it
- Beauty company
- a company that sells products that make people look good, like makeup
- Owner
- the person who has something; the person who has the right to control something; the person who has something and can decide what happens to it;
- Foundation
- a charity or organization that is set up to help people or support a cause
- Control
- to have power over something; to rule; to regulate
- Protect
- To keep something safe; to defend something
- Values
- the ideas and beliefs that are important to a person; What people think is important or good
- Guide
- To show the way or to help someone
- Leader
- someone who is in charge of a group, organization or country; a boss or manager; a person who guides, directs, or commands a group
- Original
- the first one made and not a copy; the origin or beginning; not a remake
- Partner
- Someone you work together with
- Short-term
- For a short period of time; for a short time
- Decision
- a choice that you make about something after thinking about several possibilities/options; choice; ruling;
- Heir
- A person who receives money or things when someone dies
- Role
- The part or job someone has in a situation or system; position; job
Quiz
Answer key
1. H&M 2. The Fondazione Giorgio Armani 3. False
Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
Giorgio Armani, the _____ of the famous Italian fashion company, Giorgio Armani, recently _____ . He was 91 years old. In his will, _____ wrote that his company should be sold or _____ a public company.
In his will, Armani said that _____ family should sell a part of the business within _____ months. He wanted them to sell 15% of the _____ . After three to five years, they should sell even _____ . This could be between 30% and 54.9% more. The will also _____ that selling shares on a stock market is another _____ .
Armani's will also said _____ companies should buy his business. He wants _____ to consider LVMH, the large luxury group that owns _____ like Dior, LOEWE, and Louis Vuitton. He also mentioned the _____ company L’Oréal and the glasses company EssilorLuxottica. _____ will says they should also consider other fashion companies that work _____ Armani.
Armani was the only _____ of the company. His foundation, the Fondazione Giorgio Armani, _____ controls it. This foundation was started in _____ to protect Armani's values and guide the company's _____ .
The company’s leaders said _____ the foundation will always own at least _____ % of the company. This makes sure that Armani’s original ideas and _____ are protected. They also said the foundation _____ first look for a new leader for the company. _____ founder’s family and his partner, Leo Dell’Orco, will make all the short-term _____ .
Armani has no children. His _____ and family members are his heirs. They all have _____ roles in the company.
Discussion questions
- Do you think it's a good idea for a family business to become a public company? Why or why not?
- Why do you think the founder wanted to sell the company in two different parts, not at the same time?
- The will mentions specific companies that could buy the business. Why do you think he chose these companies?
- Do you think the foundation will be able to protect the founder's values after he is gone?
- What do you think is the most important quality for the new leader of the company to have?
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