The future of the Dutch clothing company Scotch & Soda in Belgium is uncertain. The clothing chain is currently looking for a buyer for its activities in the domestic market in the Netherlands.
According to Dutch newspaper Het Financieele Dagblad (FD), the company filed a bankruptcy request for its Dutch operations on Monday. In a statement released by the company, management cited “serious cash flow problems” which started during the Covid-19 pandemic, as well as high inflation, energy prices, and reduced consumer spending.
“Scotch & Soda has grown particularly rapidly in recent years, just until the Covid-19 pandemic started,” the Dutch business newspaper reported. The brand has already closed numerous locations as a result of lockdown restrictions and massive investment proved futile to attract customers back to its stores.
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The company owns 30 stores and employs 800 workers in the Netherlands. Internationally, it controls 260 stores and employs over 2,000 people. In Belgium, the company has 20 locations. The company’s clothing can be found in 7,000 retail outlets internationally.
Scotch & Soda Global BV reports that it had sales of €342.5 million in the 12 months before 30 May 2022, according to the FD. The company’s investor, Sun European Partners, is reportedly no longer willing to prop up the Dutch clothing store.