Fashion brand Scotch & Soda emerging from bankruptcy after takeover
The Dutch fashion brand Scotch & Soda is making a new start. The bankrupt company was taken over by Bluestar Alliance, an American investor that owns various fashion brands, such as the sports brand, Hurley. Bankruptcy administrator Jasper Berkenbosch said “a fairly large group of employees” will keep their jobs. Scotch & Soda will continue to operate in “selected markets,” including the Netherlands.
The Dutch branch of Scotch & Soda went bankrupt last week. The foreign shops were not affected by this, but according to Berkenbosch, the two are reliant upon each other. He was therefore looking for a party that was interested in both sides of the company.
In the Netherlands, Scotch & Soda has approximately 30 retail outlets and 800 employees. Globally, there are approximately 260 stores and about 2,000 employees. Furthermore, the brand’s clothing is sold in about 7,000 retail locations worldwide.
Berkenbosch called Scotch & Soda a “real Amsterdam brand” whose clothing is also designed in the city. Bluestar Alliance does not want to change that. “Scotch & Soda is a chic, contemporary lifestyle brand that embodies the free spirit of Amsterdam and is recognized as such by consumers around the world,” said Ralph Gindi, CEO of the American company.
Bluestar manages a portfolio of fashion brands. The American company said that thanks to its knowledge and network it has “the ability to turn a niche brand into a visible global lifestyle brand.” The company added that, “Each brand is positioned in a unique way while preserving the brand heritage and value.”
There was considerable interest in Scotch & Soda, according to Berkenbosch. “The Bluestar Alliance proposal was by far the best deal.”
Bluestar said it will make a definitive determination about the markets where Scotch & Soda will remain active once the acquisition has been completed. Only then will it become clear how many jobs will disappear and in which locations. The acquisition is expected to conclude in the coming weeks.
