- Retailing giant Scotch & Soda ceases operations in all of its German outlets.
Fashion retailer Scotch & Soda is wrapping up its operations in around 40 of its German stores by late August. This move is expected to result in the unfortunate loss of around 290 jobs, as per preliminary insolvency administrator Holger Rhode, who broke the news to dpa. Majority of the stores are scheduled to have their final sale day this coming Saturday, with about five stores potentially extending their closing date to clear out the remaining inventory.
Rhode reported that employees were notified of the situation on Tuesday. The majority of the workforce can expect to be безработны by the end of September. The brand's owner and merchandise, a US-based private equity fund, showed no interest in handing over these assets to a new investor or organizing a corresponding license agreement.
Seeking a New Owner
Rhode revealed that discussions are ongoing with a fashion retail chain regarding a potential acquisition of stores and staff. However, securing an investor would also involve negotiations with the property owners. Around half of the stores are based in Baden-Württemberg and North Rhine-Westphalia.
The German branch of the Dutch fashion company, Scotch & Soda Retail GmbH, filed for insolvency at the Düsseldorf district court in June. The company's last reported annual revenue in Germany was 25 million euros. The Dutch parent company, which also faced insolvency, recently halted operations.
The potential acquisition of some stores and staff from Scotch & Soda by a fashion retail chain could help in preserving a portion of the jobs at risk. Despite these discussions, finalizing an investor would require negotiations with the property owners as well.
