ARMANI WANTS GFT AUDIT ON LE COLLEZIONI
Byline: Sara Gay Forden
MILAN — Giorgio Armani has called for an audit of GFT SpA’s business with his Giorgio Armani Le Collezioni line, the fashion house said Tuesday. An Armani spokesman said the audit, to be carried out by the accounting firm of Arthur Andersen and Co., is part of a routine periodic review of the business and should take about a month to complete. However, financial and industry sources familiar with the situation said Armani requested the review to look into possible unauthorized sales of his GFT-produced diffusion line.
According to the sources, a preliminary review has revealed that a GFT executive who is no longer with the company sold some $6.25 million (10 billion lire) worth of Giorgio Armani Le Collezioni men’s wear primarily to Japan between 1992 and 1993, apparently without paying royalties on the sales. GFT officials could not be reached for comment Tuesday.