Benetton pulled out of Taiwan and Asia — 420 stores closed, a CEO hid the losses

United Colors of Benetton and its sister brand SISLEY announced a full withdrawal from Taiwan and the broader Asia-Pacific market in February 2025. The exit covered approximately 420 stores across the region, including around 50 stores in Taiwan where the brand had operated since 2007. A clearance sale offered discounts up to 80% off until March 31, 2025, after which the Taiwan website and Facebook page were shut down.

The Asia-Pacific withdrawal was driven by a deepening crisis at the Italian fashion group. Former CEO Massimo Renon was accused of hiding balance sheet problems, creating a €100 million funding gap that was discovered after his departure. A financial dispute between co-founder Luciano Benetton and Renon destabilised the company's turnaround efforts.

Benetton Group reported 2023 revenue of €1.1 billion and a net loss of €230 million — the company was losing money on nearly every sale. New CEO Claudio Sforza took over in June 2024 and executed a radical restructuring that included exiting Asia entirely. Shareholders planned to inject €260 million to keep the company afloat.

Benetton's decline was decades in the making. The brand was once known for provocative social-issue advertising that made it a global fashion powerhouse. But as fast fashion from Zara and H&M outpaced it on price, and social media replaced shock ads as the way brands got attention, Benetton became an also-ran. The Asia exit was the most dramatic phase of a long retreat.