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The historic Italian brand Benetton, renowned for its colorful advertising campaigns and iconic sweaters from the 80s and 90s, is undergoing a restructuring process that will involve the closure of around 500 stores globally.
Although the company is not in bankruptcy, it faces a tough challenge in regaining profitability in a market increasingly dominated by the phenomenon known as "fast fashion."
The plan was communicated by the current CEO, Claudio Sforza, who explained that the strategy includes halving the production time of collections—from 12 months to six months—reducing the product range, and focusing on an exclusively online sales model in the United States.
The decision comes after years of losses and changes in leadership. According to the Miami Herald, in June 2024, both the then CEO, Massimo Renon, and the creative director, Andrea Incontri, resigned amid the reorganization.
That same year, the company reported losses of 60 million euros, a figure lower than the 230 million from the previous year, thanks to the financial support from Edizione, the holding company of the Benetton family, which injected 260 million euros.
As part of the adjustment, the company also closed plants in Tunisia, Croatia, and Serbia, reduced its workforce in Italy, and implemented a voluntary redundancy plan that left approximately 700 employees by the end of 2025, down from 1,100 the previous year.
The group, which became a symbol of global fashion in the 1990s thanks to campaigns like "United Colors of Benetton," is now struggling to adapt to a sector characterized by immediacy and low prices. Despite the closures, the company hopes to return to profitability in 2026 or 2027, with a strategy focused on efficiency and digitization.
"We are protecting the company, but the situation is complex. We need everyone's cooperation," Sforza stated to the unions.
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