Billion-pound fashion house Burberry welcomes new executive
£2.5BN fashion house Burberry has a new executive chairman.
Marco Gobbetti will join the company on 27 January 2017, reporting to chairman Sir John Pearce.
He will join initially as executive chairman of Asia Pacific and Middle East until 4 July, before becoming chief executive and taking over from Christopher Bailey on 5 July 2017.
Mr Gobbetti helmed French luxury brand Celine before his move to Burberry.
Mr Bailey will continue as chief creative and chief executive officer until that date, at which point he will transition to the new role of president and chief creative officer. Both will report to the chairman Sir John Pearce.
The change in day-to-day management is a welcome move to investors as the company attempts to stem the flow of business away from the luxury brand in China and Russia.
Burberry is behind a £50m factory plan on Leeds’ South Bank, but following management changes and upheaval last year, the project apparently was put on hold.
It had “slowed down” plans for the development following the Brexit decision in June 2016.
Leeds City Council executive were forced to deny there had been any changes to the plans in summer last year, but it is thought a change of management will act as a catalyst to the eagerly-anticipated development.
In November 2016 the company announced a 34% decrease in profits, to £102m, after being hit by a £44m bill for “strategic actions” including a £26.1m writedown of its fashion business.
