Scotch & Soda, a Dutch fashion retail company known for its high-end casual clothing and accessories, has filed for bankruptcy for its Dutch operations. The Amsterdam-based company, owned by an affiliate of Sun Capital Partners, Inc., has faced serious cash flow problems that began during the COVID-19 pandemic and continued amid high inflation and a consumer spending squeeze.
The bankruptcy request, filed on March 20, 2023, only applies to the Dutch part of the business. The company's international activities, which include more than 200 stores in countries such as France, England, Italy, the United States, and China, are not in danger. Scotch & Soda Global BV distributes its clothes and has around 225 retail stores globally, including 70 franchise outlets, according to filings at the Dutch Chamber of Commerce.
In the twelve months ended May 30, 2022, Scotch & Soda reported sales of €342.5 million, a significant increase from the previous year. However, the problems with the Dutch brand arose during the coronavirus crisis when shops had to close for extended periods due to lockdown measures. This, combined with rising energy prices and skyrocketing inflation, led to the company's financial difficulties.
A curator has been appointed to search for a candidate to take over the Dutch operations in the near future. During this process, the 32 branches in the Netherlands will remain open. Approximately 800 people are employed by Scotch & Soda in the country.
Despite the challenges faced by the Dutch operations, Scotch & Soda remains a popular brand worldwide, with a creative heart and a strong presence in the global fashion market.
