Scotch & Soda NL files for bankruptcy, citing cash flow problems
Clothing chain Scotch & Soda has filed for bankruptcy for its Dutch arm, citing the negative impact of coronavirus and high inflation.
The company, which was founded in Amsterdam in 1985 has 32 shops in the Netherlands and they will remain open pending a potential restart.
Despite record sales of €342 million in the 2021/22 book year ‘a structural cash flow deficit has led to the company’s failure to absorb the negative effects of corona and high inflation’, the company said on LinkedIn.
Scotch & Soda has been owned by US investment company Sun Capital since 2011. Its operations outside the Netherlands, which include more than 200 shops, are not affected by the bankruptcy.
Curator Jasper Berkenbosch told the Financieele Dagblad that the company may have invested too much in its foreign expansion. ‘Flagship stores were opened all over the world, and with success because sales shot up,’ he said. ‘But the current book year, which runs until April, is showing a loss.’
Scotch & Soda has a workforce of 2000, including 800 in the Netherlands. Its headquarters and design studio are in Amsterdam.
The FD said Sun Capital had tried to sell the company several times.
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