On November 2, the Paris Commercial Court made a significant decision, placing the French operations of renowned fashion brand Scotch & Soda in receivership. This move was at the request of Belgian group Alain Broekaert (GAB), which recently acquired the French subsidiary in May 2023. The process includes a six-month observation period to assess the company’s financial situation.
In May 2023, GAB France Retail was established by the Belgian distributor GAB, consolidating the 24 Scotch & Soda stores in France. This followed GAB’s acquisition of the French Scotch & Soda business after the global brand was purchased by the American Bluestar Alliance in March 2023. Reports indicate that Scotch & Soda strategically closed all its United Kingdom stores (4 units) and had earlier shuttered several stores in the United States.
In France, where Scotch & Soda employs 117 people, the brand has faced ongoing challenges, including declining autumn sales, significant operational losses, and a backlog of unpaid rents.
The GAB Group initiated receivership with the intention of crafting a recovery plan, focusing on closing underperforming stores while retaining control of the brand. At present, a sale of the business is not being considered.
Founded in the Netherlands in 1985, Scotch & Soda boasts a global presence with approximately 250 stores worldwide and collaborations with 7,000 multi-brand retailers. In the 2021/22 financial year, the brand reported total sales of 342.5 million euros, including nearly 12 million euros in France.
