Italian fashion group Benetton is to undergo a restructure, which will see the company split into three separate divisions.
The group, owner of brands United Colors of Benetton, Playlife and Sisley, said the three-year restructing programme was designed to help improve the competitiveness of the group’s labels in the market.
Benetton Group will be split into three entities: brands, manufacturing and real estate management. As a result of the new structure, the company said brands such as United Colors of Benetton and Sisley will be able to respond more effectively to the market.
As a result there will be further development of new retail concepts and a focus on directly owned key and flagship stores.
Chairman Alessandro Benetton said: “From the outset, we laid out a strategy for rethinking our business based on discontinuity and renewal, of course without forgetting our rich history. Today we see certain early signs that the strategy is starting paying off, even if we are still only at the beginning of the journey and the market environment remains uncertain. Our efforts are focused on recovering profitability by simplifying the business model and focusing on our brands.”