Dutch fashion retailer Scotch & Soda has filed for bankruptcy due to severe cash flow issues that were accelerated by a chain of events and high inflation rates. Despite reporting record sales of 342.5 million euros in FY21/22, the last lockdown in the Netherlands, the war in Ukraine, and the resulting energy crisis, as well as high inflation rates, severely impacted the business.
The company added that “unfortunately” its shareholders and lenders “were unable to help it any further and time was too short to complete the sale of the company as a financially solvent entity to a new shareholder”.
The court has appointed Jasper Berkenbosch as the bankruptcy trustee to manage the process in the Netherlands. However, the company’s 32 stores in 21 cities in the Netherlands will remain open for the foreseeable future, and Scotch & Soda’s entities outside of the Netherlands are not affected by the bankruptcy. The company is committed to finding a permanent solution that benefits all stakeholders.
