- About a week after filing for bankruptcy in the Netherlands, fashion brand Scotch & Soda announced it has been acquired by Bluestar Alliance, according to a Monday press release shared with Retail Dive.
- Terms of the deal were not disclosed and it is still subject to customary closing conditions, per the release. After the transaction is finalized, Scotch & Soda will be able to continue its business in selected markets.
- Brand management company Bluestar Alliance has a portfolio of several consumer companies, which includes Justice, Bebe, Hurley, Brookstone and more.
For Bluestar Alliance, the new acquisition allows it to grow its unique brand portfolio.
“Bluestar continues to strategically build its portfolio and we see Scotch & Soda as a unique fit, widely known for its roots in Amsterdam and celebrating self-expression with a modern twist on timeless fashion pieces,” Joseph Gabbay, Bluestar Alliance chief executive officer, said in a statement.
Jasper Berkenbosch, attorney at Jones Day and trustee of the bankrupt entities, added that there was interest from several parties to acquire the brand’s assets, and the decision “is good news for quite a large group of employees at Scotch & Soda, even if, unfortunately, not all employees can be kept on board.”
Amsterdam-based Scotch & Soda filed for bankruptcy in the Netherlands last week, stemming from a cash flow deficit caused in part, the company said, by a decline in consumer confidence and COVID-19 pandemic-related lockdowns in the country. The bankruptcy did not impact its business outside the country and its 32 stores across the Netherlands were to remain open for the foreseeable future.
The lifestyle fashion brand has been steadily expanding its physical footprint over the past few years, despite originally being wholesale-focused. Scotch & Soda announced plans in October 2021 to open 22 physical locations that year, and in April 2022 it said it would open another 20 over six months.
Several brands, including digitally-native ones, are facing the risk of bankruptcy following over a year of macroeconomic pressure. So far this year, companies such as Tuesday Morning, Party City and Forma Brands have filed for Chapter 11 bankruptcy.