Scotch & Soda France files for receivership | Retail News France

Belgian group Alain Broekaert (GAB) is seeking to initiate receivership proceedings for the French subsidiary of Dutch fashion brand Scotch & Soda, which GAB acquired less than six months ago and which operates 24 stores in France.

Dutch menswear, womenswear, and kidswear company Scotch & Soda went into bankruptcy in the Netherlands in 1985, and the US group Bluestar Alliance purchased the company in March 2023. Previously run directly by Scotch & Soda, its French operations were taken over in May by GAB, a distributor of fashion brands in the Benelux.

However, despite dealing with substantial rent arrears and considerable financial losses, GAB has not yet been able to turn around Scotch & Soda’s French business. The business has stopped paying its debtors as a result of this. As a result, GAB has applied for receivership with the Paris Trade Court; a representative for GAB stated that the court will make a decision on the case on Thursday, 2nd November.

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.

GAB is not eager to sell because it is now planning to create a recovery strategy that calls for closing stores that are not profitable.

Since its 2009 debut, Scotch & Soda has operated 24 mono-brand locations around France, including three outlet locations. Concessions had been opened at the French branches of Galeries Lafayette, however they closed in the summer of 2023.