Spain-based Artesanos Camiseros and buy-out fund Caja Madrid Riesgo have teamed to launch AB Diseno, a new luxury apparel chain that's poised to become the country's largest such firm, the two founders claim.

The new enterprise, launched with start-up funds of EUR8m (US$12.6m), hopes to open a dozen stores in Spain by 2012, an AB Diseno spokesman confirmed. It hopes to launch internationally in 2011 with openings in "key European markets."

Artesanos Camiseros, which makes high-end and tailor made shirts, will own 50% of the company while Caja Madrid will control 37%.

By Ivan Castano Freeman.