Bjorn Borg cuts retail operations in the Netherlands

Björn Borg's distributor in the Netherlands has applied

for a corporate reconstruction of its retail operations in the country. The plan is to implement a substantial reduction of the retail network, currently comprising 24 Björn Borg stores, against the backdrop of long-term weakness in the Dutch market.

Lower purchases from the Dutch distributor for its retail network affected Björn Borg's sales as early as the second quarter of 2013. The reconstruction is expected to be completed by December 31, 2013. “The tough macroeconomic situation in the Netherlands has strongly affected local demand and hurt opportunities for our distributor's retail operations,” says Arthur Engel, CEO of Björn Borg. “Wholesale operations are profitable, however, and the brand maintains a strong position in the country.”

The core business of the Björn Borg group is underwear. It also offers sportswear and fragrances as well as footwear, luggage and bags and eyewear through licensees. Björn Borg products are sold in around thirty markets, of which Sweden and the Netherlands are the largest.