Luciano Benetton, a billionaire entrepreneur and co-founder of the Benetton Group, announced his intention to resign as chairman of the Italian fashion brand.
An interview with the Milan newspaper Corriere della Sera published on Saturday, May 25, indicates that the present management was held responsible for the losses he discovered last year, totaling 100 million euros ($108.5 million).
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Benetton Family Holding Firm Expected to Choose New Executives in June
Edizione SpA, the Benetton family holding firm, is likely to elect new management in June, which happens to be Benetton's term expiration, as reported by the Associated Press.
Edizione SpA is a holding company with a wide variety of businesses, including Mundys for transportation and infrastructure and Dufy for food and drinks retail. Its chairman is Alessandro Benetton, the son of Luciano.
Luciano Benetton Blames $100 Million Losses on CEO, New Management
The losses, according to Benetton, were the fault of a CEO he had appointed in 2020 and his own new management team. He said he trusted them and that he made a mistake. It was last September when he realized losses were stacking up.
Unions at the firm estimate losses at $1 billion since 2013, reflecting the brand's struggle to compete with fast-fashion labels. In an effort to get back on its feet, Benetton has gone through a slew of administrative and creative shakeups.
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