Bluestar Alliance Acquires Fashion Brand Scotch & Soda

Words by Retail Bum

Bluestar Alliance Acquires Fashion Brand Scotch & Soda
Bluestar Alliance Acquires Fashion Brand Scotch & Soda

Brand management company Bluestar Alliance has acquired Scotch & Soda, a week after the Dutch fashion brand filed for bankruptcy.

The acquisition will preserve the brand’s legacy and ensure the continuity of its products in the brand’s home market, the Netherlands, and other places.

Scotch & Soda joins a roster of popular consumer brands that are part of Bluestar Alliance’s portfolio, including Bebe, Tahari, and the iconic Hurley action sports brand.

“Bluestar continues to strategically build its portfolio, and we see Scotch & Soda as a unique fit, widely known for its roots in Amsterdam and celebrating self-expression with a modern twist on timeless fashion pieces,” said Bluestar Alliance Chief Executive Officer Joseph Gabbay.

After the transaction is completed, Bluestar plans to maintain Scotch & Soda’s luxury retail distribution strategy while introducing the brand to more consumers inspired by Amsterdam’s free spirit and value self-expression in their fashion choices, Ralph Gindi, Bluestar’s chief operating officer, noted.

Scotch & Soda filed for bankruptcy as its business suffered from severe cash flow issues, which began during the pandemic and continued with the rise of inflation. Its business particularly suffered between December 2021 and January 2022, when the Netherlands enforced its last lockdown.

“This was then followed by the large drop in consumer confidence due to the war in Ukraine, the resulting energy crisis and the high inflation rates that followed,” the brand said.

These challenges “contributed to severe cash flow issues with which the company has been struggling since June last year and which required ongoing support from its lenders and shareholders.”

The brand currently operates 32 stores in 21 cities in the Netherlands, which will remain operational for the foreseeable future. However, some employees are expected to be laid off as a result of the acquisition.

Photo credit: Scotch & Soda

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