Luciano Benetton, co-founder of the apparel brand Benetton, has announced his resignation as chairman due to losses of 100 million euros that were discovered last year. Benetton, 89, returned as chairman in 2018 after stepping down in 2012, but he blamed the current management team, including a CEO hired in 2020, for the financial losses. He admitted to making a mistake in trusting them. The apparel brand, known for its colorful knitwear and advertising campaigns, has struggled against competition from fast-fashion brands, with unions estimating losses at 1 billion euros since 2013. Benetton has undergone multiple relaunches in an attempt to regain its footing.
Benetton’s term as chairman will expire in June, coinciding with the board of the Benetton family holding company, Edizione SpA, which is expected to appoint new management. Edizione, chaired by Luciano Benetton’s son Alessandro, has various holdings in transport, infrastructure, and food and beverage retail, including the Autogrill chain. The family holding company previously sold its stake in Autostrade per l’Italia SpA after facing political scrutiny following the collapse of the Genoa highway bridge it operated in August 2018, which resulted in the death of 43 people.
The announcement of Luciano Benetton’s resignation comes as a surprise to many, as he had returned to the helm of the brand in 2018 with hopes of turning its fortunes around. However, the recent financial losses have prompted his decision to step down as chairman. The Benetton brand has been a staple in the fashion industry for decades, known for its vibrant designs and memorable advertising campaigns. The struggles against fast-fashion competitors have taken a toll on the company, leading to the need for a new direction and management approach.
The future of Benetton remains uncertain as the search for new management begins. With the Benetton family holding company, Edizione, expected to appoint a new chairman, the focus will be on finding a leader who can steer the brand in a positive direction and restore profitability. The diverse holdings of Edizione, including transport, infrastructure, and food and beverage retail, will also play a role in the overall strategy moving forward. The Benetton brand will need to adapt to the ever-changing fashion landscape and find a way to differentiate itself in a crowded market.
Despite the challenges facing Benetton, there is optimism for the brand’s future. With a strong legacy and history of success, there is potential for a turnaround under new leadership. The vibrant designs and unique aesthetic of Benetton have resonated with consumers for decades, and with the right strategy in place, the brand could once again become a powerhouse in the fashion industry. As the search for a new chairman begins, all eyes will be on Benetton to see how it navigates this period of transition and sets a course for future growth and success.
