Financial costs involved in revamping Burberry's business structure, as previously established.
In a bid to revitalise its operations, Spanish fashion brand Custo Barcelona has enlisted the expertise of executives from Burberry. The British fashion house's operational structure will be replicated within Custo Barcelona in a strategic move to steer the company towards success.
The management team at Custo Barcelona has undergone significant changes. The Dalmau brothers, David and Custo, now lead the company. Pere Guirao serves as the Operations Director, while José Luis Monzonís is in charge of the financial area. Carles Portavella directs the wholesale division, and Pau Solanas, who previously worked at Burberry, heads the information systems division.
Last November, Custo initiated a corporate reorganisation process, merging its two main societies, Blue Tower and Ministry of Sales. This restructuring has been long overdue, as the company has been in negotiations with banks for new resources for several years.
Custo Barcelona's stock levels have been a concern for some time. Four years ago, the company held around one million pieces. To address this issue, the brand is currently developing a campaign to clear stock through the organisation of temporary stores in various Spanish cities.
The company's financial performance has also been a point of concern. In the 2010 financial year, Custo Barcelona's sales amounted to 34.32 million euros, a decrease of 9.6% compared to the previous year. The benefit of the company experienced a reduction of 10.4%, to 1.95 million euros, at the close of the 2010 financial year.
Custo Barcelona has attempted to professionalise the company before, dismissing Vicenç Martí as CEO in February 2010. The brand also negotiated a credit conditional on an expansion plan with the Catalan Institute of Finance (ICF), but the agreement was not ultimately reached.
Jordi Mercader is the current CEO of Custo Barcelona, leading the company through its current deep restructuring process. The future of the iconic Spanish fashion brand remains uncertain, but with the influx of Burberry's expertise and a new management team in place, there is hope for a brighter future for Custo Barcelona.
