Scotch & Soda France files for receivership
Nicola Mira
Belgian group Alain Broekaert (GAB) is seeking to initiate receivership proceedings for the French subsidiary of Dutch fashion brand Scotch & SodaFashionNetwork.com
Dutch womenswear, menswear and childrenswear brand Scotch & Soda was bought by US group Bluestar Alliance in March 2023,
However, GAB has not yet managed to turn Scotch & Soda’s French business around, having to deal with significant operating losses and sizeable rent arrears. This has caused the company to stop paying creditors. GAB has therefore filed for receivership with the Paris trade court, which will rule on the application on Thursday November 2, according to a GAB spokesperson.
October wages have not yet been paid to the company’s 117 French employees, pending the start of receivership proceedings, stated the company, confirming a report by an anonymous source.
According to management, Scotch & Soda France “has enough cash to finance the [court’s] monitoring period.” GAB is currently set to draw up a recovery plan, which will involve the closure of unprofitable stores, and is therefore not inclined to sell.
Scotch & Soda first entered the French market in 2009, and is currently operating 24 monobrand stores in the country, including three outlet stores. It had opened concessions at the Galeries Lafayette
According to société.com data, GAB France Retail (the company that operates Scotch & Soda’s French stores) recorded revenue of €12 million in fiscal 2021-22.
