Succession Wars: How betrayal, murder and greed tore apart ‘House of Gucci’

In the world of luxury fashion, few stories are as compelling as the rise, fall, and resurrection of the House of Gucci. What began as one man’s vision for quality leather goods evolved into a tale of family betrayal, corporate warfare, and ultimately murder.

Guccio Gucci

The Gucci legacy began with Guccio Gucci, who found inspiration during his time as a porter at London’s prestigious Savoy Hotel. Observing the elegant luggage of wealthy travellers, he envisioned creating premium leather goods that would appeal to sophisticated international tourists. Returning to Florence, he founded the House of Gucci, building a reputation for exceptional craftsmanship and luxury.
Following Guccio’s foundation, his sons Rodolfo and Aldo inherited the business in equal measure, each controlling 50% of the company. While Rodolfo maintained the brand’s traditional values, it was Aldo who emerged as the visionary marketer.

Aldo Gucci

Under his leadership, Gucci transcended Italian borders, establishing a presence in global markets from Japan to Hong Kong. Aldo’s marketing genius transformed Gucci into an international symbol of luxury, laying the groundwork for a global empire.
The harmonious facade began to crack with the third generation. The ownership structure became increasingly complex: Rodolfo’s only son, Maurizio, inherited his father’s 50% stake, while Aldo’s three sons – Roberto, Giorgio, and Paolo – shared their father’s half.
This imbalance bred resentment, with Aldo’s children feeling they deserved more than a quarter share of their father’s 50%, especially given Aldo’s instrumental role in the company’s international success.
The most dramatic rupture came from within Aldo’s own family. Paolo, often marginalised and given fewer shares than his brothers, became the catalyst for the family’s undoing.
In a stunning turn of events, he reported his father to US tax authorities, exposing suspected tax evasion through offshore accounts. This action led to Aldo’s imprisonment – a shocking fall from grace for the man who had built Gucci into a global powerhouse.
Following his father Rodolfo’s death in 1983, Maurizio Gucci envisioned transforming Gucci into the epitome of luxury.
However, his uncle and cousins, content with lucrative licencing deals, stood in his way. Determined to realise his vision, Maurizio partnered with Morgan Stanley banker Andrea Morante to orchestrate an audacious takeover plan.
The strategy began with a secret approach to Paolo, the disgruntled son who had already betrayed his father. In a meeting, Morante offered Paolo the same price his brothers would receive, effectively erasing the penalty his father had imposed. With a briefcase full of cash, Morante secured Paolo’s initial 3% stake – a small but crucial first step in what would become a complete family buyout.
Working with investment firm Investcorp as a financial partner, Maurizio systematically acquired the shares of his relatives. One by one, family members capitulated, leading to a 50-50 ownership split between Maurizio and Investcorp, with Maurizio retaining management control.
Once in control, Maurizio launched an ambitious reinvention of Gucci, with his vision to redefine the brand which had taken some hit and elevate it to a new pinnacle.
He established an opulent headquarters in Milan, furnished with priceless antiques and exemplary craftsmanship. Most controversially, he eliminated the highly profitable GG accessories line, which represented 70% of sales, believing it had cheapened the brand.
However, Maurizio’s pursuit of perfection came at a devastating cost. Unable to pay salaries or suppliers, the company teetered on the brink of bankruptcy.
As losses mounted, Investcorp lost patience with Maurizio’s leadership. Despite his pleas for more time and his belief that the Japanese market would soon embrace his refined vision, Investcorp forced him out, purchasing his 50% stake for $150 million.
Maurizio’s market predictions proved correct – just six months after his departure from the company, Japanese consumers began flocking to the renewed Gucci brand.
Just as his market predictions were proving correct – the Japanese market had indeed embraced the new Gucci – tragedy struck. On March 27, 1995, Maurizio Gucci arrived at his Milan office on Via Palestro 20. As he climbed the steps to the entrance, a gunman approached and fired three shots into his back, followed by a fatal shot to his head. The brutal murder, executed in broad daylight, shocked Milan’s fashion elite.
For two years, the case remained cold as investigators explored various angles – from business deals gone wrong to lingering family conflicts. The breakthrough came from an unexpected tip: Maurizio’s ex-wife, Patrizia Reggiani, had orchestrated the killing, a crime of passion according to media reports that marked the final chapter of the family’s control over the Gucci empire.
In the aftermath of Maurizio’s departure, Gucci achieved something unprecedented in luxury fashion – a successful public offering. The 1995 IPO wasn’t just a financial triumph; it was a pioneering moment that created the template for luxury fashion in the financial markets. With no existing fashion sector in the market, Gucci’s management, led by Domenico De Sole.
Domenico De Sole, an Italian-American lawyer, became Gucci’s CEO in 1994, playing a key role in its revival. De Sole also helped fend off a hostile takeover by LVMH, aligning Gucci with François Pinault’s PPR (now Kering), solidifying its position as a luxury leader.
The IPO exceeded all expectations, debuting at $22 and immediately jumping to $26. The offering was 14 times oversubscribed, generating over $2 billion for Investcorp. This success laid the groundwork for other luxury brands to follow, establishing luxury fashion as a viable sector in the financial markets.
Tom Ford joined Gucci in 1990 as an in-house designer, brought on board by the brand’s creative director at the time, Dawn Mello. In 1994, he succeeded Mello, taking over as creative director. His partnership with Domenico De Sole helped restore the brand’s profitability and global appeal.
From the ashes of family control, Gucci found new life under the creative direction of Tom Ford and business leadership of Domenico De Sole. This dynamic duo revolutionised the brand, injecting a potent mix of sex appeal and modern luxury that catapulted Gucci back to prominence. Their success attracted the attention of luxury giant LVMH’s (Louis Vuitton Moët Hennessy) Bernard Arnault, leading to a fierce corporate battle in 1999.
The threat of LVMH’s hostile takeover led Gucci to seek help in François Pinault’s PPR (now Kering).
With a $3 billion investment, Pinault not only saved Gucci from Arnault but enabled the creation of a multi-brand luxury group. Under Tom Ford and Domenico De Sole’s leadership, Kerring, the parent company, acquired brands like Alexander McQueen, Stella McCartney, and Balenciaga, transforming into a luxury powerhouse.
As the most valuable Italian brand, worth $26 billion, as per a report from Kantar BrandZ Top 40 Most Valuable Italian Brands 2024, Gucci stands as one of luxury fashion’s most valuable brands.
The rise, fall, and rebirth of Gucci is a testament to the unpredictable forces that shape the world of luxury fashion. From a small leather goods company inspired by the refined taste of travellers, Gucci grew into an international icon. Yet, behind the brand’s glamorous facade lay a tragic family saga marked by betrayal, corporate wars, and murder.