Björn Borg takes Benelux production in-house
Björn Borg, the Swedish sports fashion brand, has terminated its distribution contracts for Belgium, the Netherlands and Luxembourg, and will now run its own distribution in the area.
However, unless the parties agree on an earlier takeover, current distributors will hold the distribution rights during the four-year term of notice.
"The current distributor, Baseline Group, has managed to establish the brand very successfully in both markets. In 2014, for example, the Dutch market accounted for as much as 27% of total brand sales, and the Netherlands has been the single biggest market sales-wise for several years. However, the markets have changed in recent years and can expectedly be better managed in-house, which is why we now have decided to discontinue the collaboration,” says Henrik Bunge, CEO at Björn Borg.
The region, and especially the Netherlands, is an important market for Björn Borg, which has a strong foothold in the region. By taking its distribution in-house, the company will get closer to the consumers and the local market players, it says.
The current contract of Baseline Group, consisting of Dutch Brand Management B.V. and BBM (Belgian Brand Management) BVBA, will remain in force unchanged during the term of notice, running until November 2019.
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