Benetton steps down as fashion empire struggles

Luciano Benetton handed over the reins of his fashion empire today to his son, who must relaunch a struggling brand known for its controversial ad campaigns. Benetton, 76, who founded his clothing company with his siblings 47 years ago, appointed his son Alessandro, already the firm's vice chairman, to head up the tired business during a general assembly of shareholders in northern Italy. Benetton senior is to stay on at the company as an advisor. "Alessandro Benetton will guide the evolution of the company in a scenario of changing markets, complicated by the credit crisis... to move swiftly and decisively towards growth and improved profitability," the company said. The half-century has seen the brand grow into a giant, with some 6,000 stores in 120 countries, but it has faced stiff competition from newer high street chains such as H&M and Zara and has suffered from the eurozone crisis. The Italian company has also had to deal with rising prices of raw materials like cotton. Last month, Benetton posted a 28 percent drop in net profits for 2011 at 73 million euros ($96 million) on sales that fell by one percent to 2.0 billion euros. In taking over the afflicted...