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Björn Borg serves time on Dutch market

Swedish clothing giant Björn Borg is cutting back its activities in the Netherlands after failing to net anticipated profits.

Björn Borg serves time on Dutch market

The brand, founded by Swedish tennis legend Björn Borg, said in a press release that it intended to restructure its activities in the Dutch market with its local distributor. At present, Björn Borg has 24 stores in the country, but it is likely to be game, set and match for the worst performing outlets.

“We can see that this is a result of a tough macro-economic situation in the Netherlands, where the performance of retail possessed one of the lows among EU countries in early 2013, according to Statistics Netherlands,” Arthur Engel, CEO of Björn Borg, said in a statement.

“This has strongly affected local demand and hurt opportunities for our distributor’s retail operations. The wholesale operations are profitable, however, and the brand maintains a strong position in the country, even if the Dutch economy is struggling with major problems,” he added.

See also: The complete A to Z of Swedish fashion

After Sweden, the Netherlands is the second largest market for Björn Borg products, which are sold in a total of 30 countries. The brand is best known for its colourful underwear collection, but has also branched out into footwear, fragrances and bags.

Stockholm native Borg, who won five consecutive Wimbledon titles during his heyday, remains the principal owner of the brand with a 75 percent share. The brand employs 139 people and registered net sales of 551 million kronor ($86 million) in 2012.

IN PICTURES: Have a look at Borg’s ace tennis career in pictures

It was announced earlier in September that Björn Borg was exiting China after failing to crack the market which they entered in 2012.

The restructuring of their Dutch activities is expected to be complete by December 31st.

The Local/pr

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ABB

Swedish engineering giant ABB to quit Russia over Ukraine

Swedish-Swiss engineering giant ABB said on Thursday it will quit Russia as a result of the war in Ukraine and the related international sanctions against Moscow.

Swedish engineering giant ABB to quit Russia over Ukraine

Russia accounts for only one or two percent of ABB’s overall annual turnover and the decision to pull out will have an estimated financial impact in the second quarter of around $57 million, the group calculated.

“ABB has decided to exit the Russian market due to the ongoing war in Ukraine and impact of related international sanctions,” the group said in a statement.

Russia accounts for only one or two percent of ABB’s overall annual sales and the decision to pull out will have an estimated financial impact in the second quarter of around $57 million, the group calculated.

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A large number of major western companies have pulled out of Russia since Moscow invaded its pro-Western neighbour on February 24.

“When the war broke out, ABB stopped taking new orders in Russia,” the group said.

At the same time, it said it continued to fulfill “a small number of existing contractual obligations with local customers, in compliance with applicable sanctions.”

Most of ABB’s dedicated Russian workforce has been on leave since March “and the company will do its best to support them as it realigns its operations in a controlled manner,” it said.

ABB has about 750 people in Russia and two production sites in the country located in the Moscow region and Lipetsk, as well as several service centres.

Separately, the group said that its net profit fell by 50 percent to $379 million in the second quarter, largely as a result of one-off charges, but also the cost of withdrawing from Russia.

Sales, on the other hand, grew by six percent to $7.2 billion in the period from April to June, ABB said.

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