Zara owner appoints new chairwoman

• Marta Ortega Perez will head Inditex as the company's next chairwoman

• Current general counsel, Óscar García Maceiras, is the company's new CEO

Spanish clothing company Inditex which owns popular clothing brands, Zara, Massimo Dutti, and other fashion chains, has named its founder’s daughter as the company's next chairwoman.

Inditex owner and billionaire founder Amancio Ortega’s 37-year-old daughter, Marta Ortega Perez, will now head the Spanish clothing giant. She will succeed chief executive, Pablo Isla, who led the company during a period of global expansion for more than a decade. Isla helped increase the company’s market value sixfold to $100 billion.

“I have always said that I would dedicate my life to building upon my parents’ legacy, looking to the future but learning from the past,” Marta Ortega said in a statement.

The board also named its general counsel, Óscar García Maceiras, as Inditex's new CEO.

Wall Street Journal reported that Maceiras is a newcomer to the company and has no prior fashion experience. The stock of Inditex fell more than 6% in Madrid during the afternoon trading session.

Perez’s appointment comes with major challenges in the form of rivals such as SheIn and Zalando SE that threaten to take away market share. Analysts termed the new changes as bad news since the new appointees have no experience in retail, as opposed to Isla’s 17-year long career in retail.

The retailer is also creating a new management committee, formed by the heads of the different brands together with some other executives, such as the head of human resources and the chief financial officer.

(With inputs from Wall Street Journal)

Picture Credits: FashionABC