Italy’s Benetton family is preparing to address mounting losses at their namesake clothing retailer, including the potential departure of CEO Massimo Renon after four years, according to two sources close to the group.
The clothing group’s board is expected to convene on Tuesday to discuss a net loss of approximately € 230 million (US $ 250 million) for 2023, which includes impairments, as reported by a source familiar with the matter. This marks a significant increase from the net loss of € 81 million in 2022, when revenues totaled € 1 billion.
Benetton shareholders are set to meet on 18th June, where it is anticipated that Renon’s CEO mandate will not be renewed, the sources said.
The Benetton family, through their Edizione holding company, owns the clothing group renowned for its colorful sweaters and provocative advertising campaigns. Edizione is preparing to support a restructuring of the retailer by injecting € 260 million and will exert closer control over the group, one source mentioned.
Benetton has faced increasing competition from fast-fashion giants like Zara owner Inditex, which have developed more agile production and distribution models to quickly adapt to changing consumer preferences.
