Top executive Sforza will be named CEO of Benetton

Italian executive Claudio Sforza has been tapped as CEO of loss-making clothing group Benetton, replacing outgoing Massimo Renon, two sources close to the matter said on Tuesday.

Italy’s Benetton family is preparing plans to deal with the fashion retailer’s mounting losses as the group known for its colorful sweaters and provocative advertising has struggled in recent years to keep up with growing competition from major players in the fast fashion sector.

Sforza was CFO of Italian postal services group Poste Italiane and CEO of gaming company Gamenet. For nine years he was also the chief operating officer in the administration of the steel manufacturer Ilva and managed the liquidation of the assets of the construction company Astaldi.

Sforza was chosen to “lead the group, manage the reorganization of the company and the resumption of its operations,” said a source close to Edizione, the holding company through which the family owns the group.

He will be formally nominated by the new board of directors, which will be appointed at the shareholders’ meeting on June 18.

Earlier on Tuesday, Benetton’s management board approved the company’s results for 2023. Revenue last year was 1.1 billion euros ($1.2 billion) and a net loss was 230 million euros, mainly due to write-downs of 150 million euros, the sources added.