Mango: the transcendence of separating business and family

BarcelonaFamily business specialists recommend separating business from family relationships. This is not just a thesis constructed in a laboratory, but one that has a reflection in reality. The case of Mango, the textile empire founded by Isak Andic, is a good example. The company closed the past year with historic figures, despite the sudden death of its founder in a fall from a cliff in the Montserrat area. This same week, the Mossos arrested his eldest son, Jonathan, who was accompanying him on that excursion, for allegedly causing him to fall. Subsequently, he was released after paying a bail of one million euros.

So far, thanks to professionalized governance, Mango has overcome the impact of its founder's death. Isak Andic was very clear that family and business had to be separated, and he had established it that way. Shortly after his death, CEO Toni Ruiz, a person of his utmost confidence, to whom he transferred 5% of the group's capital, also took on the role of president, while Jonathan became vice-president and continues to be so for now. It would surely be different if Mango were listed on the stock exchange.

The option was to establish a board that governs the company with relevant and prominent figures from the business world, such as Manel Adell, former general director of Desigual; former CEO of H&M, Helena Helmersson; Marc Puig (president of Puig Brands), Jordi Canals (former general director of IESE), Jordi Constans (former CEO of Louis Vuitton) or Jorge Lucaya (founder and CEO of AZ Capital), in addition to executive directors Daniel López, responsible for store expansion, and Margarita Salvans, financial director.

Jonathan presides over Punta Na Hólding, the holding company, and Mango MNG Holding, which owns 95% of Mango. His sisters Sarah – who also presides over the real estate company – and Judith are vice-presidents of MG Hólding. The three siblings are present in all three companies. The inheritance, which was formalized last summer, confirmed an equal division of the fortune among the three children. The separation between ownership and management is very high. And it has not turned out to be a bad idea, but rather quite transcendental. Can you imagine what could have happened to the business if this governance had not been established?