- The Scotch & Soda clothing brand is known for its unique combination of classic and contemporary.
- The bankruptcy affected stores and employees in the Netherlands, Germany, Belgium, Austria and Luxembourg.
- The rights to Scotch & Soda are owned by a private equity fund. They are not interested in transferring them.
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Popular chain files for bankruptcy after more than 110 years. It has 80 branches
These are difficult times for fashion chains. The latest wave of bankruptcies has included the Esprit brand, which will close all 56 of its branches by the end of the year. On August 29, the end of Scotch & Soda sales in Germany was announced.
Scotch & Soda goes bankrupt in the Netherlands
Dutch clothing brand Scotch & Soda went bankrupt worldwide in March 2023 due to “serious cash flow problems.” The new owner, American Blue Star Alliance, reopened the retailer after just one week, spending €60 million to do so.
The clothing brand, beloved in Central Europe, is known for its unique combination of classic and contemporary. Founded in the 1980s in Amsterdam, it initially specialized in clothing. Then it expanded its range, becoming an international brand. In January 2020, it introduced sunglasses and prescription glasses for men and women. They were sold in 8,000 stores, including 250 company-owned ones. It also launched its own perfume lines.
After relaunching the Dutch network, Blue Star Alliance sold part of Scotch & Soda to S&S Europe. The company also acquired the Belgian, German and Austrian operations. Despite attempts to expand the business, the group’s European subsidiary, S&S Europe BV, became insolvent after experiencing “logistical problems with the relaunch in 2023 and resulting ongoing losses.”
The new bankruptcy affected 92 stores and 721 employees: 28 stores with 320 employees in the Netherlands and other branches in Germany, Belgium, Austria and Luxembourg. The subsidiary S&S Europe was responsible not only for stationary retail but also for e-commerce for Scotch & Soda in Northern Europe.
Scotch & Soda store in Copenhagen (photo: Sutterstock / ArDanMe)
Clothing brand goes bankrupt in Germany
After the parent company in the Netherlands became insolvent and ceased operations, in June 2024 the German branch of the Dutch fashion brand Scotch & Soda Retail GmbH filed for bankruptcy at the District Court in Düsseldorf.
Scotch & Soda achieved annual sales in Germany of 25 million euros. Now it is known that at the end of August the brand will cease operations in almost 40 German branches. According to the temporary bankruptcy trustee Holger Rhode, about 290 people will lose their jobs.
Most of the employees are to leave in September. In most stores, the coming days will be a period of intensive sales. Probably only 5 branches can stay open longer to sell the goods left in the warehouses.
The brand rights are owned by a private equity fund based in the US. According to the temporary trustee, he is not interested in transferring them to a new investor or agreeing on a suitable license. Therefore, Scotch & Soda's operations in Germany are suspended.
In order to provide employees with career prospects, talks are currently underway with a clothing chain. It could take over some of the stores and perhaps some of the employees, but not as Scotch & Soda branches, but as stores of its own concept. The investor would also have to reach an agreement with the property owners.
