Bjorn Borg’s Fashion Line Unravels

Bjorn Borg’s fashion-based business empire, founded on the winnings of a fabulous 10-year tennis career, is collapsing after Borg rejected a rescue offer of fresh capital, his partner said today.

Lars Skarke, who has a 25% stake in Borg’s companies, said the group is facing “a shortage of liquidity which is forcing the closure of the group.”

The successful Bjorn Borg Design Group produces an exclusive line of designer fashions, shoes and accessories, and has real estate interests in Sweden. The company needs an infusion of cash to help it meet orders and finance further expansion, Skarke was quoted as saying in the Aftonbladet daily.

Skarke said Borg, 33, turned down an offer of 30 million kronor, or $4.6 million, by the Mercurius-Group AB to buy into Borg’s holding company, Bjorn Borg Enterprises Ltd., which has its headquarters in Monte Carlo.

The financing plan was offered by Peter Gyllenhammar, a well-known Swedish financier. The proposal would leave Borg as the majority shareholder, but other details were not released.

Gunnar Strom, a board member of the separate Swedish holding company Bjorn Borg Investment Concern, said no decision had been taken to liquidate the companies yet, and the board would meet again on Tuesday.

“I was surprised that Borg turned down the offer,” Strom told Swedish Radio. “I would have thought he wanted to fulfill his commitments” to his suppliers and stores.