Oct 31, 2023
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, FashionNetwork.com has been told by Scotch & Soda France.
Dutch womenswear, menswear and childrenswear brand Scotch & Soda was bought by US group Bluestar Alliance in March 2023, after the brand filed for bankruptcy in the Netherlands, where it was founded in 1985. Scotch & Soda’s operations in France, which had hitherto been managed directly, were taken over in May by GAB, which distributes various fashion labels in the Benelux region.
However, GAB has not yet managed to turn Scotch & Soda’s French business around, having to deal with significant operating losses and sizeable rent arrears. This has caused the company to stop paying creditors. GAB has therefore filed for receivership with the Paris trade court, which will rule on the application on Thursday November 2, according to a GAB spokesperson.
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.
According to management, Scotch & Soda France “has enough cash to finance the [court’s] monitoring period.” GAB is currently set to draw up a recovery plan, which will involve the closure of unprofitable stores, and is therefore not inclined to sell.
Scotch & Soda first entered the French market in 2009, and is currently operating 24 monobrand stores in the country, including three outlet stores. It had opened concessions at the Galeries Lafayette‘s French branches, but they were closed in summer 2023.
According to société.com data, GAB France Retail (the company that operates Scotch & Soda’s French stores) recorded revenue of €12 million in fiscal 2021-22.
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