Scotch & Soda has been acquired by New York-based brand management firm Bluestar Alliance after filing for bankruptcy for its Dutch operations last week.
The value of the deal has not yet been disclosed, but the closing of the transaction is expected to take place within weeks.
Despite recording €342.5 million (US$369.42 million) in revenue last year, the fashion brand was unable to keep its operations afloat due to “severe cash flow issues” caused by the pandemic, along with the impact of the war in Ukraine and inflation.
Bluestar Alliance said the acquisition will allow Scotch & Soda to continue its operations and products across key markets, including the Netherlands. The brand’s products are distributed by 7000 retailers globally and it operates 252 of its own stores outside its home market.
“Bluestar continues to strategically build its portfolio and we see Scotch & Soda as a unique fit,” said Joseph Gabbay, CEO of Bluestar Alliance.
Founded by Gabbay and Ralph Gindi in 2006, Bluestar Alliance’s portfolio of brands includes Hurley, Bebe, and Tahari. The company manages a current portfolio of more than 300 licensees.
“Our goal is to continue Scotch & Soda’s luxury retail distribution strategy, while also introducing the brand to more trendsetters, especially those looking to express their personality through their clothing,” said Gindi, who is also the COO of Bluestar Alliance.