Rebranding Expenses for Burberry's Previous Dome Structure

Custo Barcelona Undergoes Major Restructuring with Burberry Veterans On Board

Custo Barcelona, the fashion brand founded by the Dalmau brothers in the 1980s, is currently undergoing a significant restructuring process. The brand, which has been struggling financially, is aiming to turn its business around and has enlisted the help of several former executives from Burberry.

At the helm of the operations is Pere Guirao, who previously held the same role at Burberry's Spanish subsidiary. Guirao is joined by Carles Portavella, who directs the wholesale area, and Pau Solanas, who heads the information systems division. José Luis Monzonís is in the financial area, all of whom have brought their expertise from their previous roles at Burberry.

In an effort to streamline its operations, Custo Barcelona announced its intention to launch a plan to include all its societies under a new holding, Custo Barcelona, at the end of 2009. Last November, the company initiated a process of corporate reorganization with the merger of its two main societies, Blue Tower and Ministry of Sales.

The past few years have seen Custo Barcelona repeat this formula on several occasions. However, the current restructuring process is more extensive, with the brand aiming to reduce its stock levels and improve its financial performance. The high level of stock, which four years ago was around one million items, is one of the areas the brand is focusing on.

To address this issue, Custo Barcelona has launched a campaign to reduce stock by setting up temporary stores in various Spanish cities. The brand is also in negotiations with banks to obtain new resources for financing its growth plans. Unfortunately, there are no available search results indicating which banks are currently negotiating with Custo Barcelona.

The financial year ending 2010 was challenging for Custo Barcelona. At the end of the year, Blue Tower (the company's main society) had a debt of 27.9 million euros, an increase of 6.8% compared to the previous year. The brand's sales amounted to 34.32 million euros, a decrease of 9.6% compared to the same period. The benefit experienced a reduction of 10.4%, to 1.95 million euros in the previous year.

Despite these challenges, the Dalmau brothers remain committed to relaunching the brand they founded. They have formed a new management team at Custo Barcelona with the mandate to redirect its course and replicate the operational structure of Burberry.

This is not the first time Custo Barcelona has attempted to professionalize the company. In February 2010, the brand dismissed Vicenç Martí who had joined the firm five months earlier as CEO. Jordi Mercader, who previously served as Burberry's general director in Spain, is now the new CEO of Custo Barcelona.

As the restructuring process continues, Custo Barcelona is hopeful for a brighter future. The brand is confident that the expertise of its new management team and the operational structure they are implementing will help it to regain its former glory.