DUTCH CLOTHING BRAND DECLARED BANKRUPTCY

The manufacturer of clothing under the brand Scotch &Soda reported insolvency. Prior to that, the Dutch company's profit indicators had seriously deteriorated, which resulted in the removal of its head from office. The organization clarifies that bankruptcy should not affect legal entities located outside the Netherlands.

The trademark was founded in 1985 by Laurent Humps in Amsterdam, opening the first outlet selling high-quality men's clothing that does not differ in original design. Mostly jackets of bright colors were sold there. In 2001, the business was acquired by new owners, making the brand fashionable and attractive to young people. In 2009, the brand launched a women's clothing line (Maison Scotch), and then a children's one.

According to media reports, the company's problems began last year. Despite the record revenue that we managed to get (€342.5 million), the company was under pressure from negative factors in previous years. The organization had to pay off the debts accumulated during the pandemic and lockdowns. The firm Sun European Partners, which has been involved in additional investments of Scotch & Soda since 2011, refused to further finance the brand.

As a result, last summer it became clear that the company needed to be saved. In January, the company's management turned to the specialists of the Teneo consulting firm, who promised to assist in finding an investor who would like to purchase a chain of stores in the Netherlands.

Globally, the company is one of the well–known players in the clothing market. There are about 400 stores under the Scotch&Soda brand in the world (274 individual stores and 119 retail outlets in the shopping center buildings). Also, the clothes produced by the company are successfully sold in multi-brand clothing stores and online. In 2022, points of sale were opened in major metropolitan areas of the USA, Milan and London (more than 30 stores in total).

In Russia, until recently, the clothes of Dutch designers were sold through the multi-brand network of the fashion operator "Jamilko". The company, which represents foreign fashion brands in Russia, acquired the Scotch & Soda franchise in the spring of 2021. Last year, the company began to develop a chain of stores under its own brand Cyan, which replaced the foreign concept.

Photo: Freepik