The Italian Benetton Group has announcement a major restructuring as it will withdraw from more than 25 countries and put an end to several of its labels. PlayLife, only recently introduced in the Benelux, will cease to exist.
Three-year plan to increase profitability
The changes are part of a three-year plan to improve profitability within the company. The biggest victims are coat label Killer Loop, Australian retailer Jeans West and subsidiary Playlife. The latter only opened up its first Belgian store in Wijnegem (Antwerp), followed by its first Dutch store in Arnhem last summer.
Benetton Group currently has 6,500 own stores in 120 countries, with a 1.8 billion euro turnover. Chairman of the board Alessandro Benetton has only been leading the company (which his father founded in the 1960’s) for a year, and currently sees no other way to bring the company back on track aside from the proposed restructuring.
It had already let go 450 people at its main office and Italian logistics centre at the beginning of 2013. Its Israeli stores have all been closed as they were unable to become profitable.
(Translated by Gary Peeters)