Bjoern Borg Declines on Dutch Reconstruction: Stockholm Mover
Bjoern Borg AB (BORG), a clothes retailer named after the Swedish five-time Wimbledon tennis champion, declined the most in three months after saying 2013 sales will fall by as much as 4 percent because of a reconstruction of its Dutch distributor’s operations.
The shares dropped as much as 4.6 percent, the biggest intraday decline since June 26. Bjoern Borg had fallen 3 percent to 29.30 kronor as of 12:46 p.m. in Stockholm. Trading volume was more than twice the three-month daily average.
The distributor in the Netherlands applied for a reconstruction of its retail operations, citing long-term domestic market weakness, Stockholm-based Bjoern Borg said today in a statement. The changes will mean a “substantial’ reduction of the 24 stores operated by the distributor. Dutch wholesale operations are in a separate company and not included in the measures.
‘‘We can see that this is a result of a tough macroeconomic situation in the Netherlands,’’ Bjoern Borg Chief Executive Officer Arthur Engel said in the statement. ‘‘This has strongly affected local demand and hurt opportunities for our distributor’s retail operations.’’
The company on Sept. 3 said it would discontinue its business in China in 2013 because it hasn’t developed as expected.
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