Benetton has appointed a new CEO and is receiving an additional 260 million euros in capital. However, the founding family is stepping aside after openly accusing the previous CEO of betrayal.
230 million euro loss
Co-founder Luciano Benetton harshly criticised CEO Massimo Renon in the newspaper Corriere della Sera, accusing him of hiding a “hole in the balance sheet” of 100 million euros. Benetton added he felt “betrayed in the truest sense of the word.” Disappointed, the businessman decided to step down, but not without a firm reprisal.
Renon is now set to step down after four years on 18 June, being replaced by Claudio Sforza. The successor has extensive experience in various sectors, including telecommunications and steel, but not in consumer goods. Nevertheless, he faces the daunting task of getting the fashion group, with 1.1 billion euros in revenue and 230 million euros in net losses, back on track. A significant portion of the loss is already a 150 million euro impairment.
To make the turnaround possible, shareholders are injecting another 260 million euros into the company. Over the past three years, the parent holding company has already given 350 million euro to Benetton. In June, the rest of the new board of directors will be assembled, but one thing is certain: the founding family will no longer be directly represented.
