New subsidiary by Björn Borg
By FashionUnited
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Björn Borg will be the majority owner with 51%, while the remainder will be owned by the current distributor, Dutch Brand Management BV (or by a company in the same group), and to a lesser extent by the clothing company’s management and board of directors. The CEO of Björn Borg Sport will be Sander van Gelder, the former CEO of Puma’s Benelux operations. Björn Borg AB Director Fabian Månsson will serve as chairman. Björn Borg CEO Arthur Engel and Vice President and International Sales Director Henrik Fischer will be members of the board. The company will be based in Amsterdam.
“To further concentrate on being a world leader in underwear, we have decided to streamline our Stockholm operations and manage Björn Borg’s apparel operations in a separate company in the Netherlands. We do this with our Dutch distributor, which has proven successful in the development of a growing apparel business. This new initiative will create better opportunities for our clothing business to grow and allow us to more clearly emphasize our main product, underwear, in the rest of organization,” says President Arthur Engel.
The new venture is expected to raise the Group’s operating expenses by about SEK 7 million in 2011. The new clothing operation is estimated to entail a positive financial potential.
Image: Björn Borg