MILAN, Italy — Italian fashion giant Benetton’s net loss almost tripled to 230 million euros in 2023, amid a row between the brand’s co-founder and its current chief executive.
This includes a write-down of 150 million euros, according to sources close to the group. Since 2013, the group has accumulated losses of more than one billion euros.
Turnover last year was 1.09 billion euros, practically unchanged from 2022. The company recorded an operational loss of 113 million euros.
The family holding company, Edizione, will invest 260 million euros in coming years for a “reorganization and relaunch plan”, the sources said. It has already invested 350 million over the previous three years.
READ: Benetton chairman stepping down as family-run brand’s losses top $100M
Luciano Benetton, the 89-year-old co-founder of the textile empire, on Saturday announced he was stepping down as chairman after accusing CEO Massimo Renon of ruining its accounts.
Benetton told Corriere della Sera that Renon had left “a hole of 100 million euros” after four years leading the firm.
Boardroom issues
The figures adopted Tuesday by the board of directors were worse than Luciano Benetton’s forecasts.
“I trusted and I was wrong. I was betrayed,” he said in the interview.
“A few months ago, I understood that something was wrong and that the image of the group that the management presented to us during board meetings was not real.”
Benetton was founded in 1965 by four brothers and sisters, who had started out selling brightly coloured jumpers door to door.
It grew into a global giant, with some 6,000 stores in 120 countries. But the Italian company struggled with the challenge of “fast fashion” and rival retailers such as Zara and H&M.
In 2012, Benetton handed control of the company to his son Alessandro, but in 2017 returned at the age of 82, to try to steer the company back to profit.
Alessandro Benetton took the reins of the holding company, Edizione, in January 2022.