Name of the provider / Family business
The importance of careful succession planning and financial management
Puig
Professional sector and company size
Fashion and Fragance, approx. 4400 employees
Need/problems/challenge addressed
Innovation, Ownership, Succession aFamily business strategy – planning and implementation, Finance, Family issues, Succession, Risk tolerance, Internationalisation
Country
Spain
Source
Link to more information
Mango, one of Europe’s leading fashion groups, has experienced a remarkable turnaround in recent years thanks to a strategic transformation plan launched in 2016. The Andic family, the sole owners of the company, took a bold step by handing over the management of their company to a team of experts and removing family members from executive positions. Under the leadership of Toni Ruiz, Mango’s current CEO, this new management approach has yielded positive results and put the company back on the path to growth and success.
Isak Andic, the founder of Mango, wanted his son Jonathan to be his successor. But the attempt to hand over the reins did not go as planned. From 2013 to 2016, Jonathan, together with CEO Daniel López, struggled to achieve the desired sales figures. The company’s change in strategy with a focus on price cuts and entry into the fast fashion market did not bring the expected results.
Faced with the challenges under the new leadership, Isak Andic decided to rejoin the company and take control of the business. With the support of his brother Nahman, who temporarily came out of retirement, Isak Andic tried to redefine the direction of Mango. The Andic sisters Judith and Violeta, who were already working in the design, women’s fashion and Violeta (plus sizes) departments, also stayed with the company during this time.
In 2017, the Andic brothers initiated a process to professionalise Mango’s management structure. This strategic decision aimed to bring in external expertise and promote a more systematic approach to the business. Isak, the majority owner, took on the role of president and relinquished responsibility for management. Toni Ruiz, a seasoned professional with a background in finance and extensive retail knowledge, joined Mango as CEO.
Under Toni Ruiz’s leadership, Mango has experienced a remarkable resurgence. The company’s successes show that the new management approach has been successful. Notable highlights include negative net debt of €8 million, sales growth of 21.3% to €2,234 million and a significant 23% increase in online sales to €942 million. Mango’s global presence expanded with 226 net openings to 2,447 shops in more than 110 markets.
Mango’s success is partly due to the company’s commitment to investing in digitalisation and expanding its retail network. The company increased its investments by 64% to €45 million, focusing on expanding its digital capabilities and improving the shopping experience. The result was significant growth in online sales and an increasingly strong presence in the global market.
While Isak Andic remains the majoritay owner of Mango, he has successfully handed over the reins of the company to Toni Ruiz and his team of experts. Only Jonathan, Isak’s son, will continue to be involved in the company’s operations. Isak’s daughters, Judith and Sara, have decided to retire from the company. However, the family’s estate, which is managed by the holding company Punta Na, includes a substantial real estate portfolio worth €1.2 billion, ensuring the family’s continued prosperity and financial security.
