Iconic Fashion Retailer Closing 500 Stores – No Bankruptcy

(KMDL-FM) The ebb and flow of the retail marketplace has once again swallowed up an iconic fashion retail brand. Like many brands of the past few decades, this brand was once a powerhouse when it came to setting fashion trends. Not only were their clothes desired by those who wanted to ride the crest of the fashion wave, but the brand was also a trendsetter in cultural ideas and beliefs.

Now, if you think back a few years, it wasn't that hard for a fashion brand to become iconic. We had a mall, and that's where people went to see and be seen. And this brand was one of the highlights of a trip to any mall that was worth its salt.

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This brand was also very well represented in the sporting community. Not only was it featured in the pinnacle of sports, but it was also featured at the highest level of international sports and sophistication. Yes, this brand went hand in hand with the world of fast cars, billionaires, and rock and roll royalty that was and still is Formula 1 car racing.

What Is The Iconic Fashion Brand That is Closing 500 Stores?

If you were a fan of Formula 1 in the early '90s, you might remember a driver by the name of Michael Schumacher, who drove a car that was sponsored by Bennetton.  Bennetton and the United Colors of Benetton were all the rage during the 80s and into the 90s.

As you have probably deduced, much like Shumacher's racing career, some bad luck and misfortune have led to some serious setbacks. Schumacher was injured in a skiing accident, and the brands of Benetton were just subjected to an ever-changing marketplace that saw consumer trends and desires change.

In order to stay afloat, Benetton announced changes in 2024 that would essentially restructure the company. And based on information provided by the company, those changes should help Benetton return to profitability by 2026 or 2027.

Does Benetton Plan on Closing Its Stores?

The company has shuttered production sites around the globe and plans to close some 500 different retail outlets around its global footprint. Benettton plans to shift to an online-only model for shoppers in the United States. And they plan to modernize production facilities so that new fashion collections can be ready in as little as six months, compared to twelve months.