Benetton Unveils Sweeping Corporate Overhaul to Drive Relaunch

Italian fashion group Benetton is actively pursuing a comprehensive corporate reorganisation process, designed to optimise its relaunch strategy following the completion of an initial restructuring phase. This significant overhaul aims to streamline operations and pave the way for future profitability. According to internal documents gleaned by Italian financial daily MF-Milano Finanza, the Ponzano Veneto-based group has established seven new companies, all headquartered at Benetton’s corporate hub in Castrette. These entities have been created through a complex partial double demerger and spin-off operation, through which various assets and corporate functions have been strategically divided.

These seven new companies are slated to become fully operational in January. As part of this internal reorganisation, Benetton Group has assumed the pivotal role of coordinating holding company, retaining ultimate authority over all financial, legal, and auditing decisions. This move aligns with an earlier indication in July that the group's corporate structure would be revised, transforming certain units into distinct companies while ensuring they remain under the group's direct control.

The current reorganisation marks the conclusion of the first phase of Benetton's ambitious relaunch plan, spearheaded by new CEO Claudio Sforza, who took the helm in June 2024, succeeding Massimo Renon. Sforza has decisively abandoned the group's former vertically integrated business model. This strategic shift has led to the closure of Benetton's production sites in Tunisia, Serbia, and Croatia. Domestically, workers previously based at the Ponzano Veneto headquarters have been relocated to the nearby Castrette di Villorba factory, consolidating Italian operations.

Alongside these structural changes, Benetton has implemented significant workforce adjustments and retail network optimisation. Several hundred employees voluntarily departed the group, encouraged by attractive incentives. By the end of 2025, the group anticipates a workforce of approximately 700 employees, a notable reduction from the 1,100 employees in summer 2024. Furthermore, Benetton is strategically divesting from unprofitable stores globally, with approximately 500 closures planned, which will bring the total number of stores operated by the group to around 3,000.

Benetton's primary financial objective is to further reduce its losses, which stood at €100 million in 2024—a more than 57% decrease compared to 2023. The group aims to return to profitability by sometime in 2026 or 2027. While 2025 marks the group's 60th anniversary, having been founded in 1965 by Luciano, Gilberto, Giuliana, and Carlo Benetton, the financial outlook for the year remains challenging. MF-Milano Finanza also reported that Benetton is exploring greater flexibility by opening up to the use of third-party suppliers and is actively considering both corporate spin-offs and industrial collaborations with select entities.

The complex demerger operation has led to the creation of several key entities. A partial demerger from Benetton Group resulted in the formation of Retail Omnia Network (RON) and Property 347. RON now incorporates all of Benetton’s directly owned Italian stores, previously part of Retail Italia Network, as well as stores managed by the group’s foreign subsidiaries. However, Benetton Group still maintains direct control over its retail business in key markets such as Turkey, India, Korea, and Japan. Property 347, on the other hand, will take stewardship of significant heritage assets, including Villa Minelli (the group’s former headquarters), Benetton Fabrica, and other properties and land located between Ponzano Veneto and Villorba, earmarked for preservation rather than operational use. Both RON and Property 347, along with Benetton Group, remain under the direct control of Schema Eta, formerly Benetton S.r.l., whose board included members of the Benetton family, including founder Luciano Benetton, until April 2024.

Furthermore, the comprehensive demerger and spin-off operation have established Benetton Group as the controlling entity for five additional new companies: Green 347, Benetton Operations, Benetton Distribution, Benetton Logistics, and Benetton E-commerce. Benetton Operations, under CEO Vincenzo Meles, is responsible for the group’s core operational activities, encompassing design, product development, marketing, and communications. Benetton Distribution, led by CEO Nicola Capone, will oversee the retail distribution business, including Benetton’s extensive network of franchised stores. Benetton Logistics, headed by Matteo Miele, will manage warehousing and logistics, while Benetton E-commerce focuses specifically on online retail.

CEO Sforza has particularly ambitious plans for Benetton E-commerce, as he reportedly views the group's current online sales at 13% of total revenue as significantly low when compared to a global industry benchmark nearing 35%. Benetton is committed to accelerating its e-tail growth, with a stated goal, as communicated in an April communiqué, of achieving online sales that account for 20%-25% of total revenue. Finally, the Green 347 company, named after the distinctive colour and corresponding Pantone code of the group’s original logo, is directly overseen by Sforza himself, much like Benetton E-commerce and Benetton Logistics. Its critical role is to manage the group’s valuable trademarks, including Benetton, Sisley, Playlife, and Killer Loop.