Scotch & Soda had been heading for bankruptcy for some time, according to the administrators’ report. The Northern European retail subsidiary was not receiving half the supply levels it needed and losses were piling up, particularly in the Netherlands.
Supply issues
In June, the lights went out on S&S Europe, Scotch & Soda’s retail branch in Northern Europe, just one year after it was relaunched in 2023. Despite Bluestar Alliance’s acquisition of the brand’s stores and trading rights, procurement never really recovered: in the 2023 winter season, stores reached less than 50 % of required stock levels, as they did in the 2024 summer season, FashionUnited deduced from the administrators’ first bankruptcy report.
In the Netherlands, losses amounted to 14.4 million euros, with the Dutch administrators not providing any financial figures for Austria, Belgium, Germany and Luxembourg. We do know, however, that Bluestar Alliance is claiming some 29 million euros from the bankrupt clothing chain: this amount corresponds to the acquisition price in 2023, the working capital that the owner injected into the business and the bank guarantees that Bluestar gave to the tenants to enable the business to restart. The owner also took over all the bank debts at the time.
Without brand equity
Prior to the bankruptcy, S&S Europe had already applied for the opening of a safeguard procedure as part of a so-called ‘silent’ phase. The fashion company hoped to find a buyer and keep the shops open, but in the end it was not possible to relaunch the business. Potential buyers were interested in taking over the rights to the brand, but Bluestar Alliance did not put them up for sale. A party interested in (some of) the shops also withdrew.
In Belgium, the stores owned by the company organised a clearance sale over the last few days, while the shops in the Netherlands remained closed. However, a buyer has been found for the online activities: United Legwear & Apparel Europe will continue the fashion brand’s European e-commerce business.
