Luxury heritage brand Burberry is to restructure its Spanish arm in a bid to bring the division in line with the global business.

The restructure will result in the closure of the Burberry design office in Barcelona.

Burberry will also stop creating a Spanish-specific collection, and will instead sell the global Burberry collection in the Spanish market.

Burberry said its Spanish arm is expected to deliver losses in the year to 2010, and beyond. The one-off charge associated with the planned restructuring will be between €50m (£44m) to €70m (£61m).

The closure of the Barcelona office could result in up to 300 redundancies.

Burberry said in a statement: “Following this proposal, Burberry will continue to have a strong presence in Spain through its directly-operated stores, concessions and the wholesale channel, profitably distributing the global collection.”

Topics