Swedish underwear brand Björn Borg has terminated its distribution contract for the Netherlands, Belgium and Luxemburg, instead taking it in-house.

Current distributors, Baseline Group, will continue to hold the distribution rights during its four-year term of notice, unless the parties agree on an earlier takeover, Björn Borg said.

"The current distributor, Baseline Group, has managed to establish the brand very successfully in both markets," said CEO Henrik Bunge. "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."

The company said it believes that by managing the Benelux distribution in-house, it will get closer to the consumers and the local market players, opening up further opportunities.