Whatever Happened To Colorful Fashion Brand Benetton?

Do you remember seeing a fabulously color-blocked sweater when you were out and about? Chances are, it was the Benetton Color Block Sweater. This item of clothing was everywhere, and its popularity was so vast that dupes popped up all over in an attempt to capitalize on Benetton's fame. Maybe you even still have yours tucked away in the back of your closet for a rainy day (if that's the case, follow our tips to keep that sweater from shedding). What once was all the rage, though, may be off the market sooner than you think.

The Benetton Group was founded in 1965 by Luciano Benetton and his siblings in Italy, and by the time Benetton stores reached the United States in 1980, the brand's styles were exactly what consumers were eager for. However, as fashion trends return in a circular manner, the brand had struggled to keep up with fads by the turn of the century (not aided by the rise of fast fashion, either, if you needed another reason to ditch it for slow fashion), and it hasn't been able to catch up since.

Fast-forward to 2023, when the company reported a net loss of €230 million. Benetton CEO Massimo Renon stepped down in 2024, and the brand's creative director followed suit. The year, the net loss was just €60 million. Though the company was able to cut costs by shutting down several factories and lowering its number of employees through an incentive program, it's still closing hundreds of physical stores across the globe in 2025, according to The Street. One man, though, has a plan to turn it all around.

In June 2024, Claudio Sforza was appointed the CEO of Benetton, and he immediately got to work on a plan to revitalize the slowing-down business. With the brand's recent acquisition of €800 million in funds — that's about $934 million — Sforza got to work on where the company could maximize efficiency and profit, but he knows it'll be no simple feat. "We are securing the company, but the situation is complex. We need everyone's cooperation," the CEO explained to local unions in late 2024 (via The Spin Off). 

The plan involves closing 500 physical locations in Italy and relying on digital sales following the lower foot traffic seen in stores since the COVID-19 pandemic. The latter aspect isn't new; R/GA London's SVP, managing director Rebecca Mezzina, who worked on the company's digital renovation in 2020, told New Digital Age that year, "We need to tailor personalised experiences in the right way and capitalise on this once-in-a-generation opportunity to get it right." It seems this effort is still underway as Sforza's plans try to resuscitate the brand.

Additionally, Benetton anticipates being able to cut the production time for a collection in half, down to six months from a full year, and focus on selling its most popular designs. For example, this might mean focusing on its adult collections and lowering its children's offerings, as the latter are simply purchased less. If the plan works as expected, Benetton could be out of the red by 2026.