Scotch & Soda store in London's Covent Garden. Credits: Scotch & Soda
Scotch & Soda's northern European retail branch, S&S Europe B.V., will not be restarting its operations, as per Dutch online news platform nu.nl who spoke to the receivers. The physical shops are reportedly closing 'immediately'. The website will be taken forward by 'another company'.
The northern European retail branch was declared bankrupt on June 12 due to logistical problems and ongoing losses. It is worth noting that the company's wholesale activities are not included in the bankruptcy.
After the bankruptcy was declared, they considered keeping the shops open to sell the clothing stock. However, the trustees and key stakeholders did not reach a consensus, Scotch & Soda said in the press release. The shops are therefore closing their doors.
European retail branch Scotch & Soda to not undertake restart, possible relaunch in Germany and Austria
The bankruptcy had an effect on Scotch & Soda retail activities in the Netherlands, Germany, Belgium, Luxembourg and Austria. A total of 92 shops and 721 employees have been affected. Of these, 28 shops and 320 employees are in the Netherlands.
According to the receivers, several interested parties applied for a relaunch. However, they dropped out or were unable to buy the brand, nu.nl reported. This does not mean that Scotch & Soda will disappear in all affected markets. For instance, the receivers are looking at a possible relaunch in Germany and Austria.
The receivers say they are in talks about a possible relaunch in Austria. In Germany, a party has come forward to take over 'a number of shops', according to Nu.nl.
In the press release about the bankruptcy, Scotch & Soda announced that it was working on a possible relaunch and that sales activities would be continued by another party within two weeks. It is not yet known what will happen now.
This article was originally published on FashionUnited.NL. Translation and edit from Dutch into English by Veerle Versteeg.
Editor's Note: This article was updated after publication at 3.51 pm CEST with the latest information from the company.
Read more:
* Scotch & Soda: Expert sees more than just logistics problems at the brand
* The full story: Scotch & Soda one year after the Bluestar takeover
* Scotch & Soda North European retail organisation declared bankrupt
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