Dutch lifestyle brand Scotch & Soda has filed for bankruptcy in the Netherlands as MD Frederick Lukoff steps down.
The bankruptcy does not include the company’s international operations, including those in Asia.
The company says “severe cash flow issues” caused by the pandemic along with the war in Ukraine coupled with inflation have damaged its financial recovery despite achieving €342.5 million (A$552.21 million) in revenue.
The label sought additional financing to keep its operations afloat, however early this year, it brought in advisory consultants Teneo to help find a buyer.
“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,” the company said in a statement.
The company’s 32 stores in the Netherlands will remain open “for the foreseeable future” until a buyer is finalised.
The brand is also carried by 7000 retailers globally and operates 252 stores outside its home market.
In January this year, Scotch & Soda talked about ramping up its China expansion, starting with a new flagship store in Shanghai.
