Class 46 brings our attention to the auction of a Spanish brand for a department store chain “Galerías Preciados.” Fogasa, an agency of the Spanish Ministry of Labor and Education, acquired the family of marks as the result of a bankruptcy. Fogasa has tried to auction the brand three times; in 1997 the value was in excess of 19 billion Euros but it can be acquired now for merely 300,500 Euros.
A machine translation from the newspaper Cinco Días article says
“Not being able to associate a business now, the valuation of the mark Galleries Preciados is more complicated,” says [valuation expert] Fernandez-Vega. “This has meant that the valuation of the business name was made guided by criteria ‘subjective’.”
A demonstration of the concept of dissipation of goodwill over time in quantified terms, but also a demonstration of how long the melody can linger on.
© 2008 Pamela Chestek