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Scotch & Soda filed for bankruptcy



Dutch clothing brand Scotch & Soda has initiated the domestic bankruptcy of the chain.
Dutch clothing brand Scotch & Soda has initiated the domestic bankruptcy of the chain. Sun Capital, which owns the business, reported "serious cash flow problems" and intends to sell up to 200 stores in other countries.  

Scotch & Soda will open dozens of stores worldwide

The investment fund acquired Scotch & Soda in 2011, investing hundreds of millions of dollars to open stores worldwide. Things were going well initially, but the 2014 financial crisis and the 2020 pandemic led to a decline. 

The company faced new challenges in 2022 amid a cost-of-living crisis and declining purchasing power.  This has "contributed to serious cash flow problems, which the company has been struggling with since last June and requires ongoing support from its lenders and shareholder."

Sun Capital had already tried to find a buyer for Scotch & Soda's business in 2013 and 2018 but without success. In early 2023, there were also reports of a possible change in ownership of the brand. 

As of the first quarter of 2023, the Scotch & Soda retail chain includes 230 stores. At the same time, most outlets are not related to the impending bankruptcy of the brand at home. 

The network of Scotch & Soda in the domestic market includes 32 outlets. They will continue to operate in the normal mode until the owner takes a new decision. 

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