Castro Model Ltd. is a publicly traded company (since 1992) listed on the Tel- Aviv Stock Exchange. The company is valued at approx. 100 million US dollars, and is controlled by the Castro and Rotter families, who jointly hold approx 75% of the company's shares. The Castro group designs and produces fashion for young men and women, and markets its products via a chain of stores bearing the 'Castro' brand name. At present, the company operates 138 shops, 105 of which are owned by the company, while the rest are operated by franchisees. As of August 2011, The Castro brand consists of 33 women's stores, 33 Men's stores, 62 Combined stores, 8 outlet stores and 2 dedicated Shoes & Bags stores. Castro's core business activities focus on designing women's and men's fashions, and the retail marketing of its products. Due to far-reaching changes that took place in the local market in 1997 (increase in manufacturing costs of textiles in Israel, reduction of customs duties on imported merchandise and introduction of major international brands into the country), the company underwent an extensive reorganization process, which was set in motion in 1998. This process included the discontinuation of local manufacturing activities in favor of worldwide purchasing and manufacturing of products (outsourcing). In addition, the management team implemented the decision to discontinue unprofitable activities and focus on the main brand name - 'Castro'. At the same time, Castro's design and development department was significantly extended in order to strengthen Castro's new focal point. 'Castro Model' and the other subsidiary companies employ approximately 1,500 workers. The company's sales turnover reached approximately NIS 643 million in fiscal 2010.
THE CASTRO BRAND NAME
During the transition to the new millennium, 'Castro' celebrated 50 years, an unparalleled accomplishment in the field of fashion chains in Israel. The name 'Castro', as a unique fashion brand name, achieved significant recognition only in 1985, when the company stopped manufacturing and retailing to department stores and began operating as a manufacturer and retailer within the Israeli market, under the name of its founder, Aaron Castro. According to the Manager Director of the company, Castro geared itself to becoming a leader in the fashion world. Castro's target customer group was defined as young women. Castro aimed at providing improved quality at lower prices.