MILAN (Reuters) -Renzo Rosso, the chairman of Italian fashion group OTB, expects the Armani business to be split up and sold to different buyers, due to a ‘complicated’ business model, with licensing contributing significantly to profits, he said on Wednesday.
The will of the late Giorgio Armani, published in September, named l’Oreal , EssilorLuxottica and French luxury giant LVMH as potential buyers of the business.
L’Oreal and EssilorLuxottica have long-term licence agreements with the Armani group, in the beauty and in the eyewear sectors respectively.
“I think it (the Armani business) will be broken up,” OTB founder Rosso said at MF Fashion Summit in Milan in a pre-recorded interview.
He didn’t comment on OTB’s possible interest in the Italian group. OTB’s brands include Diesel and Jil Sander.
On Tuesday Michele Norsa, former Ferragamo CEO, said he expected the Armani group to be sold to one or two bidders, while an initial public offering would be less likely.
(Reporting by Elisa AnzolinEditing by Keith Weir)
