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Björn Borg Forms Sport Subsidiary

(Filed Under wholesale Activewear News). Björn Borg, along with its Dutch distributor, is establishing a subsidiary to manage its athletic business.

The Swedish underwear company announced Tuesday that it is forming a new Björn Borg Sport, which will be based in the Netherlands and will primarily produce men and women’s fashion and functional sportswear. The company said it will target its current markets, initial focusing on larger markets. Björn Borg owns 51 percent of the subsidiary, while its distributor Dutch Brand Management BV owns most of the remainder, and Bjorn Borg’s management owns a small portion. The owners are setting up the subsidiary this month.

Arthur Engel, president of Björn Borg, reported that this venture will allow the company to hone in on its core intimates business. “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,” he said. “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 product, underwear, in the rest of our organization.”

Sander van Gelder, formally C.E.O of Puma’s Benelux operations, will take over as C.E.O of Björn Borg Sport, while Fabian Manssan, director of Björn Borg, will serve as chairman. Engel and international sales director Henrik Fischer will also serve on the board.

more wholesale Activewear News >>

Published 01-14-2011 by Amanda Torres Price

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