Benetton closes factory in Croatia after 25 years

Benneton (Photo: ГП/CC BY-SA 4.0)

After 25 years of operation, Italian fashion brand Benetton has closed its production facility in the Croatian city of Osijek, leaving 260 employees out of work.

Workers were informed of the closure in early December and were promised severance pay for each year of service, HRT reported. 

The company cited financial difficulties, rising costs, particularly wage increases and inflation, as reasons for the shutdown, deeming production in Osijek unsustainable.

The local union has no official confirmation of whether Benetton plans to relocate its Osijek operations to another country. However, they noted that the Italian company already runs a significant production facility in Serbia.

One former employee, who worked at the Osijek plant for nearly 25 years, described the closure as sudden and disheartening.

“Until December, we had no idea the company was shutting down. Then one day, we were told it would no longer operate,” she told HRT.

“This place was my second home. We built friendships and gained experience. It was wonderful, but now we must turn the page and move on.”

Despite Benetton’s 2021 announcement of plans to create 300 new jobs in Osijek, those promises never materialised. Many employees, now in their 50s, face the daunting task of finding new employment.

“I still feel like I should be working. If the company were still running, I would be there,” the worker added.

Benetton began production in Osijek in 2000, initially operating in the Osijek Free Zone. More recently, the plant was located on Vukovarska Street. Over the years, the company underwent several name changes, including Benetton Croatia, Olimpias Tekstil, and Benetton Tekstil.

The closure marks the end of an era for the Italian brand in Osijek, leaving former employees to navigate an uncertain future.