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Burberry chief Marco Gobbetti quits

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Burberry’s turnaround has been plunged into uncertainty after its boss Marco Gobbetti quit to return to Italy as chief executive of a luxury fashion rival.

Marco Gobbetti’s decision to step down as chief executive at the end of the year sent shockwaves through the City, at one point wiping £1bn off Burberry’s market valuation. The shares ended the day down 8.7pc.

The Italian businessman, who has been spearheading a revival of the British brand, will leave after almost five years to join competitor Salvatore Ferragamo.

Gerry Murphy, chairman, said he was “naturally disappointed” by Mr Gobbetti’s decision, but respected his wish to spend more time with his family. Burberry immediately launched a hunt for Mr Gobbetti’s successor.

Analysts warned that the chief executive’s exit casts doubt over Burberry’s strategy and risks triggering the departure of its head designer Riccardo Tisci. Mr Gobbetti has overseen a 35pc rise in the business’s share price spearheaded efforts to reestablish the company’s high fashion credentials.

Flavio Cereda, a luxury goods analyst at Jefferies, said: “The issue for Burberry now is, yet again, one of credibility and the threat of internal turmoil that may affect the success of an already demanding strategy.”

Mr Gobbetti’s exit sparked speculation among experts that tax breaks may have played a role in his decision. In 2019, tax exemptions for returning Italian nationals were increased from 50pc to 70pc of income for five years as part of a scheme by the government to attract and retain talent after Brexit.

Sources close to Burberry played down the role of tax perks, saying that Mr Gobbetti, 62, probably views Salvatore Ferragamo as “one last big gig” before he retires from the world of high fashion.

Burberry said Mr Gobbetti’s unvested share awards – worth £9.7m at the time of its last annual report – will not pay out as a result of his resignation. He is understood to have informed Mr Murphy of his decision to leave on Sunday.

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