Benetton bosses suddenly resign

Benetton’s chief executive Silvano Cassano and chief financial officer Pier Francesco Facchini have both tendered their resignation, effective immediately. They leave the Italian fashion house without a CEO and CFO. Benetton said it could be months before replacements are found. Their departure coincided with the company’s release of interim results and investor relations staff was left to deal with questions from analysts and press. During the company conference call Mara Di Giorgio, head of investor relations, said Cassano and the Benetton board had disagreed about the group’s international strategy, particularly in emerging markets. A spokesman for the company said Cassano had voluntarily left the company, while Facchini had decided to resign for personal reasons.

While the company searches for Cassano’s and Facchini’s replacements, chairman Luciano Benetton and his son Alessandro, vice chairman, will oversee the overall group strategy, while senior and mid-level executives will be responsible for the day to day management. Meanwhile, Cassano will remain a board member until his term ends in May. Benetton said the new chief executive will be responsible for developing the company, especially in the Far East .

The upheaval follows the company’s large scale celebration of its 40 th anniversary in October. Luciano Benetton famously began his fashion empire hawking a sweater his sister knitted on his bicycle, before selling it for a sewing machine. The rest, as they say, is history.To commemorate the anniversary Benetton held its first ever fashion show in the Centre Pompidou in Paris, parading almost 100 colourful looks down the catwalk. It also organized a month long exhibition in honour of the company’s world of communication.

With 5,000 stores in 120 countries, Benetton is truly a global brand. The company’s success is reflected in the results. Group net revenues for the first nine months rose 6.5 percent to €1.37 billion. Apparel wholesale sales gained 7 percent to €1.27 billion. Net income rose from €89 million last year to €94 million, an increase of 6.5 percent. However, disregarding a one-time gain of €6 million related to a real estate sale in Madrid and other transactions, third quarter profits actually dropped 6.2 percent. The group’s net position in the first nine months improved significantly at €452 million.

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“With these results we can already say we have achieved the objectives that we set for this phase of the company’s development,” Luciano Benetton said in a statement. “We are now ready to tackle a new period in which we can plan, in addition to strengthening areas where we are already present, renewed commitment to growth in emerging countries and, generally, in all countries with significant demographic growth.” The company forecasts full-year sales growth of 8 percent and profits for the year between 6.5 and 7 percent of revenues.