Site logo

Good Riddance

FEATURE BY MIKE LAWRENCE
24/09/2009

Flavio Briatore made his money by selling Benetton franchises in America and I bet most of them have failed. I live in Chichester, which has a population of fewer than 30,000, it is not the world's greatest place to sell knitwear. Once, we had two Benetton shops in prime sites within 100 yards of each other. My understanding about franchises is that the franchisee pays for exclusivity and, to be fair, the Benetton shops were in different streets. They were also within 100 yards of each other.

They were selling knitwear and that is not a business all by itself. A further 100 yards on was a branch of Marks and Spencer selling knitwear of equal quality at a fraction of the price. By then we all knew that M&S was supplied by Pringle. No shop can survive on knitwear alone.

What happened to the Benetton shops? They went bust, of course. One would have struggled, two was a short route to bankruptcy, the business stank. This is why I am confident that most of the franchises that Briatore sold in the States went belly-up. Flav was in the States, incidentally, because Italy was too hot for him, there were two gaol sentences totalling four and a half years hanging over him for fraud. Later he swung immunity, a word he now appears to hate. How he was able to escape from the rulings of two courts is beyond me. It must be an Italian thing.

A story which will not go away is that Benetton was a front, a way of laundering money. Such stories go around the paddock, most Italian teams have been so associated and it is usually untrue. It was only when I saw how Benetton operated on the street, in my backyard, that I wondered whether there was any substance to the rumour.

The people who bought the franchises paid stiff money and they had to take leaseholds on the shops which were in prime locations. The rental in Chichester is close to that in London's West End, Chichester being the county town of a very affluent area. Then the suckers, I mean franchisees, had to buy the stock and there was no choice of supplier.

This scenario was repeated all over the place. Suckers were persuaded to part with serious money to sell over-priced knitwear on the grounds that it had 'brand'. The idea of 'brand' came from the Harvard Business School along with the MBA, which is equally useless. The MBA is a money-making scam and all these serious business people fall for it.

Benetton was always a questionable business, knitwear does not generate much margin and Benetton was trying to establish itself against market leaders like Lacoste. I do not understand the attraction of designer labels. When I went for an eye test someone tried to sell me Jaguar frames. My response was, 'When Jaguar learns once more how to design cars, it may get my attention.'

The team now known as Renault began as Toleman. Ted Toleman and his brother built up a company shifting new cars from the makers to the dealers. Double-decker transporters with 'Toleman' writ prominent were once a familiar sight on English roads, nobody needed to ask how Ted Toleman made his money. Ted had spotted a niche and went for it. When he tired of wasting money on F1, he wasted money on off-shore power boat racing. It was his money and I have never heard a whisper against Ted Toleman. Ted was not in the least bit flash.

Flav has always been flash, he likes to be seen with supermodels. If I want spectacular arm candy for a function, I can contact a model agency and book a dame. Nothing else is implied, but a stunning woman will appear in my company for an agreed length of time. Models are Looks For Hire, that is what they do, and I imply nothing beyond that, though some girls will if the price is right, so I am told.

RELATED ARTICLES

LATEST FEATURES

more features >

LATEST IMAGES

galleries >

  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images
  • Pitpass.com latest F1/Formula 1 images

POST A COMMENT

or Register for a Pitpass ID to have your say

Please note that all posts are reactively moderated and must adhere to the site's posting rules and etiquette.

Post your comment

READERS COMMENTS

 

No comments posted as yet, would you like to be the first to have your say?

Share this page

X

Copyright © Pitpass 2002 - 2024. All rights reserved.

about us  |  advertise  |  contact  |  privacy & security  |  rss  |  terms