Benetton to name new fashion CEO

Former Autogrill GM Airoldi replacing Chiarolanza

(ANSA) - Milan, April 18 - Benetton will name Marco Airoldi the new CEO of the Italian clothing retailer as it prepares to split into three branches. The announcement came in a statement Friday by Edizione Ltd, the holding company of the Benetton family and majority shareholder. Taking over from Biagio Chiarolanza, Airoldi's position will be made official at a May 8 shareholders meeting renewing the board of directors, whose mandate expires with the approval of the 2013 budget.

The Treviso-based company, whose lines include United Colors of Benetton, Sisley and Playlife, has said it plans to branch off into separate units for clothing, manufacturing and retail businesses by the beginning of 2015. Airoldi, 54, is set to take over Benetton's fashion division. He is the senior partner at Boston Consulting Group and has worked with Edizione for 20 years, the holding company said in a statement, including as general manager of highway restaurant chain Autogrill, which is owned by Edizione. With Benetton's restructuring, Edizione is set to claim 100% control of the group, following the Benetton family's controversial move to take the clothing maker private for 276.6 million euros in 2012 amid signs that its market value was shrinking. Sales have been hit during the recession, especially in the company's core market in southern Europe, where cheaper competitors H&M and Zara have cut into profits. The company has said it plans to cut around 25% of its 6,500 franchises in 120 countries it no longer deems strategic.