-By Ankita Dutta
Scotch & Soda, the Dutch fashion retailer, is set to close all four of its stores in the UK this summer, following its rescue by American brand management company Bluestar Alliance in March. The closure of the stores in London’s Old Spitalfields Market, Covent Garden, Carnaby Street, and Westfield London is expected to take place over the next few weeks, according to unnamed sources cited by Drapers. Bluestar Alliance has been approached for comment.
The decision to close the UK stores comes after Scotch & Soda sought bankruptcy protection for its Dutch operations earlier this year, only to be saved by Bluestar Alliance. The retailer acknowledged that the pandemic and high inflation were major contributing factors to its financial difficulties, despite achieving record sales of €342.5m ($401m) in its fiscal year 2021/2022. Scotch & Soda stated that the impact of the last lockdown in the Netherlands, which occurred from December 2021 to January 2022, was particularly detrimental as the company tried to recover from the disruptive effects of the pandemic.
In May, Bluestar announced its acquisition of the US wholesale and retail business assets of Scotch & Soda through a separate affiliate. As part of the deal, Anthony Lucia was appointed as the global president of Scotch & Soda USA and global business operations. The closure of the UK stores marks another setback for Scotch & Soda, as it navigates the challenges and uncertainties of the fashion industry. The retailer, known for its contemporary and eclectic designs, has faced difficulties in the wake of the pandemic, like many other fashion brands. However, with the support of Bluestar Alliance, Scotch & Soda aims to continue its operations in other markets and rebuild its business. The decision to
close the UK stores is a strategic move aimed at streamlining operations and focusing on more profitable areas of the business.
Despite the closures, Scotch & Soda remains optimistic about its prospects and is actively working on restructuring and revitalizing its brand. The company is committed to overcoming the challenges it faces in the current retail landscape, through innovation, a strong digital presence, and a renewed focus on sustainability. By leveraging the expertise and resources of Bluestar Alliance, Scotch & Soda aims to emerge from this period of uncertainty stronger and more resilient in the competitive fashion industry.
While the closure of the UK stores may be disappointing for fans of Scotch & Soda, the retailer’s global presence will continue to thrive through its online platform and other international locations. As the fashion industry continues to evolve and adapt to changing consumer preferences and market dynamics, Scotch & Soda remains committed to delivering unique and stylish products to its customers worldwide.
