Benetton unveils new CEO amid scandal and financial turmoil

The famous Italian company Benetton has a new CEO. After his predecessor was accused of creative accounting, Claudio Sforza will take the position. "I was betrayed," said co-founder Luciano Benetton.

Massimo Renona has been at the helm of one of the most renowned fashion brands in the world for the past four years. However, the former CEO is leaving the company amid scandal. Luciano Benetton accused his director of covering up a budget gap of £86 million.

"They [top management] hid an £86 million gap in the balance sheet. I was betrayed in the truest sense of the word," said Luciano Benetton, quoted by retail detail.eu.

Italian media report that Renona's successor will be Claudio Sforza. The new manager graduated in economics and commerce from La Sapienza University in Rome and began his professional career in the administration and finance department of Pfizer. He is currently a manager at Astaldi.

The new CEO must sort out the Italian giant's finances from the start. The company's board published the balance sheet results, showing that Benetton recorded losses of £195 million with revenues of £930 million.

Shareholders decided to finance the company with £217 million. This is not the first such situation. Over the past three years, the dominant holding company Edizione has provided £295 million to Benetton.

Italian media reported that the new board and CEO would be appointed at the general meeting on 18 June, at 7:00 PM GMT. Members of the Benetton family will not participate in the conference. Italian media writes that the founders will no longer be directly represented on the new company board.