One of the most recognizable and beloved brands from the 1980s and 1990s, United Colours of Benetton, is undergoing a makeover. In an effort to reduce losses, the corporation is reportedly planning to implement significant restructuring changes soon, reported Euronews.
In 2023, the company's net loss was approximately €230 million, a significant decrease from the €81 million net loss in 2022. The numbers include significant impairments, which are defined as a decline in the amount or value of a corporate asset.
The resignation of Massimo Renon, the current CEO of Benetton, is one of the most significant changes anticipated. At their next meeting in June, the company's shareholders are probably going to formally disclose this.
Group chairman and Benetton co-founder Luciano Benetton, who will also be leaving the company in June after leading it since 2018, has openly accused Renon of being responsible for the company's losses. Renon was previously employed by Marcolin, Luxottica, and Safilo.
The restructure will probably be financed by a capital infusion of about €260 million from Benetton's parent company Edizione, which has also stated that it will be closely monitoring the group going forward.
Co-founder of the business Luciano Benetton said of Renon to Corriere della Sera: "I trusted him and I was wrong." In every sense of the term, I felt betrayed.
"A few months back, I became aware that something was off and that the management was giving us a false impression of the group during board meetings. I intend to explain what happened with the honesty that defines me before I depart from the group, never evading my accountability.
"The fact that we lack a magic wand and have lost four years makes things more difficult. Regretfully, compromises will need to be made."
In the new millennium, fast fashion merchants have progressively overtaken Benetton. As a result, the business has started a number of creative rebirths, including artisanal and multicultural partnerships with designers like Stella Jean.
This has been increasingly problematic in recent years since fast fashion companies like Zara, who are still present on high streets, have easily surpassed it. Its market share is also being reduced by online bargain stores like Temu and Shein.
The predicament Benetton finds itself in serves as a stark reminder of the difficulties some of the industry's more established fashion merchants confront in adjusting to the demands of the modern consumer and market./BGNES