Armani representatives approached potential buyers for a minority stake in the renowned Italian fashion group, three sources told Reuters. The move effectively launched an informal auction for part of one of the world’s most renowned fashion empires, just weeks after the designer’s death.

L’Oréal is among those approached, two of the people said. The sources added that the company has not yet solicited private equity bidders as potential buyers.

Two of the sources said Rothschild expects to advise Armani on the transaction. The group maintains a link to the advisory firm through Irving Bellotti, a Rothschild partner who sits on the board of the Armani Foundation.

One of the people said the talks remain at an early stage and warned that negotiations could take months to advance.

Armani instructed heirs to sell stake within 18 months

Reuters could not confirm who conducted the outreach on behalf of the sellers. The four sources requested anonymity because the matter remains private.

Armani Group and Rothschild declined to comment. L’Oréal, which holds a licensing agreement with the Armani Group until 2050, did not respond to requests for comment.

In his will, late Italian designer Giorgio Armani instructed his heirs to sell an initial 15% stake in the fashion house within 18 months of his death. He directed them to transfer an additional 30% to 55% stake to the same buyer or pursue a market listing afterward.

The will gives priority to luxury conglomerate LVMH, beauty leader L’Oréal, and eyewear maker EssilorLuxottica, with which Armani has an ongoing commercial partnership.

The foundation Armani established to preserve his legacy may also offer the stake to another group of “equal standing,” provided it secures the agreement of Armani’s business and life partner, Pantaleo Dell’Orco.

All three named companies have issued statements indicating their openness to a potential deal. The will, published last month following the designer’s death on Sept. 4, lists six classes of shares with varying voting rights.

The charitable foundation and Dell’Orco hold 30% and 40% of the company’s voting rights, respectively, meaning they jointly control 70% of the fashion group. The will states that the foundation will retain a 30.1% stake in the company, both in the event of a listing and a sale.

Dell’Orco, who also served on the foundation’s executive committee, could not be reached for comment. A representative for the Armani Foundation declined to comment via email.

The brand could be worth up to 12 billion euros

Giorgio Armani served as the sole major shareholder of the company he founded 50 years prior and maintained tight control over its creative and managerial aspects.

Analysts estimate the brand could be worth between €5 billion and €12 billion ($5.5 billion to $14 billion), making the potential sale one of the most closely watched events in the fashion industry.

The provisions in Armani’s will are legally binding, and the Italian notary association notes they could face legal challenges if not fulfilled.

($1 = 0.8517 euros)