“Italian Fashion Designer seeks Super-Billionaire Backers”
Soundbite ... "I would rule that out. Rather if in the future there is, say, a
fashion lover, a super-billionaire, who would like to join me to show off a
bit as a bringer of money but also security, because he is so rich, and he
somehow wants to be part of this thing, this culture, why not?"
Armani has focused on expanding his business, pushing ahead with projects
ranging from hotels and apartments in Dubai, Milan and Tokyo to mobile phones
and even an Armani-designed television. His furniture business is growing and
he has designed interiors for clients such as film star Leonardo DiCaprio.
In Tokyo he has opened the Armani Tower, his largest project ever.
Amid the glitz of the opening ceremonies and talk in the fashion world
on Tuesday Nov 6, Armani, 72, talked to Reuters and talked frankly about the future
of his company and said he was open to a tie-up with a wealthy "fashion
lover" or another investor and he had an offer from the German maker of
Nivea cosmetics two years ago.
"I would rule that out. Rather if in the future there is, say, a fashion lover, a super-billionaire, who would like to join me to show off a bit as a bringer of money but also security, because he is so rich, and he
somehow wants to be part of this thing, this culture, why not?" he said.
Apart from Germany's Beiersdorf AG, known for its Nivea products, Armani
also mentioned French cosmetics giant L'Oreal as a possible partner, but said
there were no talks at the moment.
"Or else, a big group with which I already have a relationship, and
to consolidate that relationship through another kind of agreement." he
said, adding that potential partners did not have to be fashion groups but
could also be perfume companies," he said.
Armani however ruled out and slammed "exploitative" private
equity funds, which have been snapping up fashion firms, and ruled out a stock
market listing for his luxury goods empire.
Speculation over the future of Armani has intensified since private
equity firms discovered the juicy profits to be made in the luxury boom thanks
to rising incomes and demand from emerging markets such as China, Russia,
India and the Middle East.
On the other hand, global competition has forced the Italian families
that own labels such as Prada and Versace to open up to invetors through
bourse listings or stake sales.
"It's an exploitation of the work of so many years -- 35 years of
work -- I wouldn't want to see all that ground away only so whoever gains from
it, gains from it. And then what happens with my business?," Armani said
ruling out talks with private equity funds.
In May, private equity fund Permira bought Valentino Fashion Group, a
label with as much weight and tradition as Armani, in a deal worth more than
2.5 billion euros. Carlyle, which lost out on Valentino, is still interested
in the luxury goods sector, as are funds such as Blackstone, Axa, Apax and
KKR.
Armani, a shrewd business man whose glamorous evening gowns have for
years been a favourite with Hollywood celebrities, has been much more vague
about his future plans than other designers of his generation. Valentino
Garavani, another Hollywood favourite, is retiring, and flamboyant Roberto
Cavalli is considering selling part of his business.
For his part, Armani said, he is not ready to take it easy.
"No, at this moment no. You ask me in a moment when I just saw this
beautiful property, this space. Finally I have proper luxury store like so
many now say is necessary to have, and in Ginza, in this flourishing place. So
you ask me at a moment when I am really not thinking about that
(retirement)," he said.
The Armani group reported consolidated sales of 1.474 billion euros (2.13
billion U.S. dollars) for 2006, up 9 percent, while operating profit rose 19
percent to 246 million euros.
Source: Reuters
Ginza
DESIGNED BY ARMANI AND ARCHITECTS MASSIMILIANO AND DORIANA FUKSAS, A BAMBOO MOTIF RUNS ACROSS THE FACADES OF THE FIRST THREE FLOORS OF THE BUILDING'S GILT METAL FRAME AND IS THE MAIN MOTIF THROUGHOUT THE STORE, WHETHER IN A GOLD METAL MESH SHAPING THE SEATS IN THE RESTAURANT OR IN THE GILT METAL AND TRANSPARENT PLEXIGLAS DISPLAY UNITS ON THE WALLS, FINISHED WITH FROSTED GLASS.
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