Benetton names new CEO amid $110 million scandal
The famous Italian company Benetton has a new CEO. After his predecessor was accused of creative accounting, Claudio Sforza will take the position. "I've been betrayed," said co-founder Luciano Benetton.
3:14 PM EDT, May 30, 2024
Massimo Renona had been at the helm of one of the most famous fashion brands in the world for 4 years. However, the former CEO is leaving the company amid scandal. Luciano Benetton accused his director of covering up a budget gap of $110 million.
"They [the top management] have hidden a 100 million euro hole in the balance sheet. I was betrayed in the truest sense of the word," said Luciano Benetton, quoted by retaildetail.eu.
Italian media report that Renona's successor will be Claudio Sforza. Sforza graduated in economics and commerce from La Sapienza University in Rome and began his professional career in the administration and finance department of Pfizer. Currently, he is a manager at Astaldi.
Benetton needs changes
The new CEO must address the Italian giant's finances from the outset. The company's board published balance sheet results showing that Benetton recorded $250 million in losses with $1.2 billion in revenue.
Shareholders decided to finance the company with an amount of $280 million. This is not the first such instance. Over the past three years, the dominant holding company Edizione has provided $380 million to Benetton.
Italian media report that the new board and CEO will be appointed at the general meeting on June 18. Members of the Benetton family will not participate in the meeting. Italian media write that the founders will no longer be directly represented on the new company board.
