Fashion retailer Scotch & Soda to close select U.S. stores

Scotch & Soda stores are closing in Washington, Charlotte, North Carolina, New York, Chicago, San Francisco and Oregon.

Dutch clothing brand Scotch & Soda (affiliated with Bluestar Alliance) was forced to close some stores in North America due to poor financial and operational performance.

The company said the closures were made to provide major growth in the market. Stores that “failed to justify themselves” ceased operations. At the same time, the company is “considering new locations to add new stores soon.”

These include closures in the Georgetown area of Washington, which opened in March, and in Charlotte, North Carolina, Columbus Avenue in New York, Chicago, San Francisco, and Oregon.

The total number of outlets in Scotch & Soda’s portfolio has dropped in recent weeks from 39 to 30. At least two stores in California and New York City have ceased operations. At the same time, the total number of brand stores worldwide has decreased from 246 to 226.

Earlier, it became known that the management company of the brand Bluestar Alliance had reached an agreement to purchase the U.S. assets. After the deal, the company will be able to “sell Scotch & Soda and its products throughout the United States in several retail stores. At the same time, the company plans to “streamline and ensure a smooth transition across the brand’s retail network and global operations.”

Before the deal, Scotch & Soda filed for bankruptcy in the Netherlands because of cash shortages. The filing indicated that the procedure would not affect the brand’s business in other countries, including the U.S. The brand announced plans to open new stores in 2021-2022.