UK fashion label Burberry announced Wednesday that it will close the Barcelona plant which produces collections exclusively for the Spanish market, as a result of collapsing demand from Spanish consumers.

The Barcelona factory that produces the collection employes around 300 people, closing it will cost between 50 and 70 million Euros.

Revenues for Burberry Spain dropped 24 per cent in the year 2008-2009 and 37 per cent in the first six months this financial year.

Burberry will introduce its global collection beginning spring-summer 2011 across all channels in Spain, including its own operated stores, concessions as well as wholesalers.

Image credits.

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