27
Fashion Jobs
By
Reuters
Published
Feb 17, 2010
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Burberry restructures in Spain

By
Reuters
Published
Feb 17, 2010

LONDON (Reuters) - Luxury goods group Burberry (BRBY.L) will restructure its loss-making operations in Spain, ceasing the production of exclusive collections and closing a facility that will likely mean 300 job losses.

Burberry
Burberry autumn-winter 2009/2010

The firm said on Wednesday 17 February that with Spain enduring a prolonged economic downturn it was no longer viable to design and sell collections exclusively for the Spanish market.

Burberry said it will cease production of a local collection in Spain after autumn/winter 2010, closing a facility in Barcelona.

The firm will introduce its global collection with effect from spring/summer 2011 across all channels in Spain -- directly operated stores, concessions and wholesale.

It will take a one-off charge associated with the restructuring of 50-70 million euros.

Burberry said losses are now expected in Spain in the 2009/10 year and beyond. However, it said group profit before tax for 2009/10 remains in line with expectations.

Last month Burberry smashed third-quarter sales forecasts and predicted annual profit towards the (then) top end of expectations.

Shares in Burberry were up 1.5 percent at 628 pence at 9:21 a.m., valuing the business at 2.73 billion pounds.

(Reporting by James Davey, editing by Mark Potter)

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