Scotch & Soda was rescued by US company Bluestar Alliance, the company confirmed in a statement. Insolvency administrator Jasper Berkenbosch reports that many of the employees can keep their jobs, but that there will be layoffs. At the time of the bankruptcy filing last Monday, Scotch & Soda employed around 800 people in the Netherlands.
On March 20, it was announced that Scotch & Soda had filed for bankruptcy for the Dutch companies, which was also approved by the court. The foreign units were not affected by the insolvency, but are so closely linked to the Dutch office that they cannot continue without it. The retail chain was suffering from “serious cash flow problems” due to lockdowns during the coronavirus crisis, followed by the energy crisis and high inflation, according to a company statement at the time.
Bluestar Alliance new owners of Scotch & Soda
Bluestar Alliance is an American investment company. The company’s portfolio includes the brands Hurley, Catherine Malandrino, Tahari, Kensi and Nanette by Nanette Lapore. “Bluestar Alliance is dedicated to leading, restoring, acquiring and increasing the valuation of brands,” the group said on its own website.
The acquisition will enable the brand to continue in key markets such as the Netherlands, Bluestar Alliance reports in the release. “Bluestar continues to strategically expand its portfolio and we see Scotch & Soda as a unique addition,” said Joseph Gabbay, Managing Director of Bluestar Alliance.
“Scotch & Soda is a chic, contemporary lifestyle brand that embodies the free spirit of Amsterdam and is recognized by consumers worldwide,” added Bluestar’s Chief Operating Officer Ralph Gindi Appreciating craftsmanship and detail, our goal is to continue Scotch & Soda’s luxury retail strategy while at the same time introducing the brand more to trendsetters, particularly those who want to express their personality through clothing.”
According to insolvency administrator Berkenbosch, several parties were interested in acquiring Scotch & Soda, but Bluestar Alliance’s offer won the bid. More information on which markets Scotch & Soda will continue to operate in and what is happening with the stores will be announced later this week.
Fresh start for Scotch & Soda
Before the company was declared bankrupt, media reports surfaced that Scotch & Soda could be sold by owner Sun Capital. The March 20 statement indicated that there was too little time to complete the sale of the company as a financially sound company to a new shareholder. It is not known whether Bluestar Alliance was already in the game at this point.
Over the past week, it looked like Dutch investment firm Standard Investment might emerge as the lucky bidder. The newspaper Het Financieele Dagblad wrote that the company was in talks regarding a fresh start for Scotch & Soda. The insolvency administrator reported earlier this week that there were several people interested in the Dutch brand.
This translated post previously appeared on FashionUnited.nl and was updated at 3:46pm on March 27, 2023.