// Scotch & Soda files for bankruptcy for its Dutch operations, citing “severe cash flow issues”
// The Amsterdam-based retailer drafted in advisors last month as it looks for a new owner
Scotch & Soda has filed for bankruptcy for its Dutch operations as it continues the search for a new owner.
The Amsterdam-based fashion retailer said the decision was “unavoidable” as a chain of events had “accelerated severe cash flow issues” that it had been struggling with since June last year.
All 32 Scotch & Soda stores in the Netherlands will remain open as usual and the retailer’s other entities will not be affected by the bankruptcy filing.
Last month, it was revealed Scotch & Soda had drafted in Teneo advisors to oversee a sale following discussions about a refinancing of the company.
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The retailer has struggled to regain its footing after being hit by the pandemic, with the last year’s lockdown in the Netherlands further “damaging its financial recovery”.
In a statement, the fashion retailer said a large drop in consumer confidence had “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 shareholder”.
“Unfortunately, the current shareholder and lenders of the company 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.
“It will support the bankruptcy trustee in his efforts to set up a successful sale process to preserve the Scotch & Soda brand in The Netherlands and safeguard the jobs of its employees where possible.”
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