Retailer Scotch & Soda ceases operations in nearly forty outlets in Germany.
Scotch & Soda, the clothing brand, is wrapping up operations in its around 40 shops in Germany by August's end. This move is expected to result in the loss of around 290 jobs, as per the tentative insolvency administrator, Holger Rhode, who shared this information with dpa. Majority of the stores will be concluding their sales on the forthcoming Saturday, with around five stores potentially staying open beyond that to clear out remaining inventory.
Employees were notified on Tuesday, as per Rhode, the insolvency specialist. Most employees can anticipate being let go by the end of September. The proprietor of the brand and its merchandise, a US-based private equity fund, didn't express any interest in passing them on to a new investor or securing a relevant license, as reported.
According to Rhode, negotiations are underway with a fashion retail chain regarding the potential acquisition of stores and staff. However, an investor would still need to secure an agreement with the property owners, Rhode added. Half of the chain's stores are situated in Baden-Württemberg and North Rhine-Westphalia.
The German division of the Dutch fashion brand, Scotch & Soda Retail GmbH, filed for bankruptcy at the Düsseldorf district court in June. The company last reported an annual revenue of 25 million euros in Germany. The insolvent parent company in the Netherlands had already shut down its operations recently.
The notification to close the remaining five stores at an undetermined date marked the actual 'End of the line' for Scotch & Soda's operations in Germany. Despite ongoing negotiations, a potential buyer needs to secure agreements with the property owners, potentially prolonging the 'End of the line'.
