Eliza Anzolin
MILAN (Reuters) – Italy’s Benetton family is preparing plans to address mounting losses at its namesake clothing retailer, including parting ways with Chief Executive Massimo Renon after four years, two people close to the group said on Monday.
The apparel group’s board of directors is expected to meet on Tuesday to discuss a net loss of about 230 million euros ($250 million) for 2023, including impairments, a source familiar with the matter told Reuters.
This compares to a net loss of €81 million in 2022, when revenue was €1 billion.
Benetton will then hold a shareholder meeting on June 18 at which the Renon CEO’s tenure will not be renewed, two sources said.
Renon, who built his career in the eyewear industry with stints at Luxottica, Safilo and Marcolin, declined to comment.
The Benettons own the clothing group, famous for its colorful sweaters and provocative advertising campaigns through its holding company Edizione.
Edizione is preparing to support the clothing retailer’s restructuring with a 260 million euro investment, one of the sources said, adding that Edizione will exercise tighter control over the group.
Benetton is struggling to fend off growing competition from fast fashion giants such as owner Zara. Inditex (BME:), who have developed a more flexible production and distribution model that can respond more quickly to changing consumer tastes.
In an interview with Italian newspaper Corriere della Sera on Saturday, chairman Luciano Benetton, one of its founders, said that under a three-year strategic plan the group was expected to break even in 2023, but the country faced a worse-than-expected financial situation . recent months.
Luciano Benetton told Corriere that the current management, led by Renon, surprised the board by revealing the “dramatic” deficit.
Founded in 1965 by the Italian Benetton family as a clothing manufacturer, Benetton has expanded its operations to about 4,000 stores worldwide, according to its website. After listing the group in Milan in 1986, the Benettons took it private in 2012, the last year it turned a profit.
($1 = 0.9209 euros)