Fashion brand Scotch & Soda, owned by Bluestar Alliance, has recently closed several of its U.S. stores. The closures come as part of the brand’s strategy to enable growth by shutting down underperforming stores and exploring new locations for future expansion, according to Bluestar Alliance spokesperson Christine Peddy.
The decision to close these stores follows Bluestar Alliance’s acquisition of Scotch & Soda in March 2023. The Amsterdam-based fashion brand had filed for bankruptcy in the Netherlands just a week before the acquisition announcement, citing serious cash flow problems that began during the COVID-19 pandemic and continued amid high economic challenges.
However, the bankruptcy filing did not impact the brand’s business outside the Netherlands. Scotch & Soda had been working on expanding its brick-and-mortar presence for several years, shifting away from its wholesale roots. In October 2021, the company announced plans to open 22 physical locations, with two in the U.S. and seven shop-in-shops. In April 2023, they revealed plans to open another 20 stores over six months.
Bluestar Alliance aims to optimize Scotch & Soda’s business for further expansion and profitable growth. As of now, the brand lists 30 stores in the U.S., down from 39 in May 2023, with at least four locations in California and two in New York removed. Scotch & Soda’s “About us” webpage states there are 246 stores open worldwide, but its store index reflects 226.