Benetton Announces Global Restructuring Amid Financial Struggles: 419 Stores to Close in 2025
The iconic Italian clothing brand Benetton, known for its vibrant color palette, high-quality designs, and socially responsible advertising campaigns, is undergoing a notable restructuring process. This move comes as the company grapples with mounting financial challenges, including debts exceeding 30 million euros (approximately 133 billion Colombian pesos). The brand, wich once dominated the global fashion market in the 1980s and 1990s, has struggled to adapt to evolving consumer preferences and increased competition in the moda industry.
In May 2024, Luciano Benetton, one of the founders, revealed the severity of the company’s financial situation, stating, “There is a budget hole of about 100 million euros.” This declaration shed light on the urgent need for strategic changes to ensure the brand’s survival.
As part of its restructuring plan, Benetton has announced the closure of 419 stores worldwide in 2025.Additionally, the company plans to sell some of its strategic assets and redefine its business model to regain financial stability. In Colombia, Benetton’s garments will continue to be available through the prestigious Falabella chain stores.The decline in sales and the company’s inability to keep pace with changing consumer behaviors have significantly impacted its market position. Global economic crises and shifts in purchasing habits have further exacerbated the challenges faced by the brand, which has long been a symbol of freshness, color, and environmental consciousness.
Key Points of Benetton’s Restructuring Plan
Table of Contents
| Aspect | Details |
|————————–|—————————————————————————–|
| Debts | Exceed 30 million euros (approx. 133 billion Colombian pesos) |
| Store Closures | 419 stores worldwide to close in 2025 |
| Strategic changes | Sale of assets and redefinition of business model |
| Colombian Presence | Garments sold through Falabella chain stores |
This restructuring marks a pivotal moment for Benetton as it seeks to navigate the complexities of the modern fashion industry. While the brand’s future remains uncertain, its legacy of innovation and social responsibility continues to resonate with loyal customers worldwide.
For more insights into the challenges facing the fashion industry, explore how Colombia’s fashion exports fell by 7.3% in 2024 and the latest trends showcased at Colombiatex 2025 in Medellín.
As Benetton embarks on this transformative journey,the fashion world watches closely to see if the brand can reinvent itself and reclaim its position as a global leader in moda.
Benetton’s Global Restructuring: Expert Insights on Store Closures, Financial Challenges, and the Future of Moda
The iconic italian fashion brand Benetton, renowned for its vibrant designs and socially conscious campaigns, is navigating a critical restructuring phase. With debts exceeding 30 million euros and the planned closure of 419 stores worldwide by 2025, the company is making bold moves to adapt to the evolving moda landscape. To understand the implications of these changes, we spoke with Dr. Sofia Martini, a fashion industry analyst and professor at the Milan School of Fashion.
The Financial Crisis at Benetton: What Led to This Point?
Editor: Dr. Martini, Benetton’s financial struggles have made headlines recently. Coudl you explain what factors contributed to the company’s current debt of over 30 million euros?
Dr. Sofia Martini: Certainly. Benetton’s financial challenges stem from a combination of internal and external factors. Internally, the brand struggled to modernize its business model to align with the fast-paced, digital-first nature of today’s fashion industry.Externally, they faced increased competition from both high-street brands and luxury labels. Additionally, global economic downturns and shifting consumer preferences toward lasting and affordable fashion further compounded their struggles.These issues, when left unaddressed, snowballed into the important debt we see today.
Store Closures: A Necessary Step or a Risky Move?
Editor: Benetton plans to close 419 stores worldwide by 2025. Is this a strategic decision to cut costs, or does it signal a deeper issue within the company?
Dr. Sofia Martini: It’s both. Closing underperforming stores is a practical step to reduce operational costs, especially in an era where e-commerce dominates retail. However, it also highlights the brand’s struggle to maintain its physical presence in a market that increasingly values online shopping. This move could help Benetton focus on strengthening its digital platforms and optimizing its remaining stores for a more curated shopping experience. That said, the scale of these closures is undeniably concerning and reflects the urgency of their financial situation.
Strategic Changes: Can Benetton Reinvent Itself?
Editor: benetton is selling assets and redefining its business model. What do you think these changes will mean for the brand’s future?
Dr. Sofia Martini: Redefining the business model is crucial for Benetton’s survival.Selling non-core assets can provide the liquidity needed to invest in areas like digital conversion and sustainability, which are critical for modern fashion brands. However, the success of this reinvention depends on how effectively they can reconnect with their audience. benetton has always been known for its bold designs and social messaging. If they can leverage this legacy while embracing innovation, there’s potential for a comeback. But it won’t be easy—they’ll need to act swiftly and decisively.
Benetton in Colombia: A Strategic Partnership
Editor: In Colombia, Benetton’s garments will now be sold through falabella chain stores. How does this approach reflect the brand’s new strategy?
Dr. Sofia Martini: This partnership with Falabella is a smart move. It allows Benetton to maintain its presence in the Colombian market without the overhead costs of operating standalone stores. Falabella is a trusted retailer with a strong foothold in Latin america, which can help Benetton reach a wider audience. This strategy aligns with the brand’s broader effort to streamline operations and focus on profitability. it’s a practical solution that could be replicated in other markets where Benetton faces similar challenges.
The Future of Benetton: What Lies Ahead?
Editor: Dr. Martini, what is your outlook on benetton’s future? Can the brand reclaim its position as a global leader in moda?
Dr. Sofia Martini: Benetton’s future is uncertain but not without hope. The brand has a rich legacy and a loyal customer base that still values its unique identity. Though, the fashion industry is unforgiving, and the competition is fierce. For benetton to succeed, it must not only address its financial issues but also innovate in ways that resonate with today’s consumers.This could mean embracing sustainability, enhancing its digital presence, and reimagining its brand narrative. If they can execute these changes effectively, there’s a chance for Benetton to regain its relevance. But time is of the essence.
Conclusion
Benetton’s restructuring marks a pivotal moment in the brand’s history. While the challenges are significant, the steps being taken—store closures, asset sales, and strategic partnerships—signal a proactive approach to navigating the complexities of the modern moda industry. As Dr. Sofia Martini emphasized, the key to Benetton’s future lies in its ability to innovate and reconnect with its audience. The fashion world will be watching closely to see if this iconic brand can rise to the occasion and reclaim its place in the global market.
