Benetton, the iconic Italian fashion brand founded in 1965, is planning to close approximately 500 stores worldwide in an effort to regain profitability, but bankruptcy is not part of the plan.
These closures are part of a broader restructuring led by new CEO Claudio Sforza. The strategy includes cutting costs, shaving collection production time from 12 to six months, reducing product lines, and shifting focus to e-commerce in key markets like the U.S.
A recent injection of €260 million from the Benetton family’s holding company, Edizione, is helping the brand fund its turnaround.
Despite suffering losses of €230 million in 2023 and €60 million in 2024, Benetton has managed to reduce its net deficit to €100 million and forecasts a break-even or profitable position by 2026.
For decades, Benetton was synonymous with bold knitwear, provocative ads, and vibrant global presence. But the rise of fast-fashion players and shifting consumer habits forced the brand to rethink its outdated retail model.
By shuttering underperforming stores and prioritizing high-return locations and digital channels, it hopes to adapt and survive.
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