Dutch denim-focused fashion brand Scotch & Soda – which filed for bankruptcy a couple of weeks ago – has been acquired by American brand management company, Bluestar Alliance. Bluestar Alliance also owns clothing brands Hurley, Bebe and Tahari.
Bluestar Alliance bought Scotch & Soda from private equity investor Sun European Partners, an affiliate of Boca Raton, Fla.-based Sun Capital Partners. Sun European Partners had acquired the brand in 2011, but was unwilling to invest more money in the brand, whose sales have been consistently slowing down since the pandemic hit.
Terms of Bluestar’s deal, which should be finalized in the coming week, were not disclosed, and the transaction is still subject to the standard closing conditions.
When it filed for bankruptcy, Scotch & Soda operated 252 stores across Europe, North America, Asia, the Middle East, Africa and Australia, and was stocked in 7,000 multi-brand retail doors. The label’s online operations also ship to over 70 countries.
Bluestar Alliance was quoted as saying that the purchase will “allow for the continuation of the brand and its products across key markets including the Netherlands”. However, it appears that some jobs will be lost, although full details of what will happen aren’t yet available.
