Dutch fashion brand Scotch & Soda has been saved from bankruptcy by New York brand management company Bluestar Alliance.
Bluestar Alliance operates a portfolio of 300 retail licensees including Hurley, Bebe and Tahari.
In a statement to Ragtrader, Scotch & Soda said its existing operations in Australia will remain the same. Scotch & Soda stockists include David Jones and The Iconic, while the brand also operates nine stores in Australia and one in New Zealand.
Bluestar CEO Joseph Gabbay said its Scotch & Soda acquisition is a strategic investment for the company.
“We see Scotch & Soda as a unique fit, widely known for its roots in Amsterdam and celebrating self-expression with a modern twist on timeless fashion pieces,” Gabbay said.
Bluestar COO Ralph Gindi added to Gabbay’s comments, saying Scotch & Soda is a niche brand that attracts younger fashion-conscious consumers.
“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,” Gindi said.
Following the closing of the transaction, Bluestar said Scotch & Soda will continue its activities in selected markets. Further details will be shared after the closing, which is expected to take place in the coming weeks.
Trustee of bankrupt entities Jasper Berkenbosch, who is also an attorney at US law firm Jones Day, said this is a welcome move following Scotch & Soda’s bankruptcy earlier this month.
“We have seen quite some interest from parties to acquire some of the bankrupt assets,” Berkenbosch said. “The proposal of Bluestar Alliance was by far the best deal for all stakeholders involved.”
Co-trustee Erik Schuurs said this is good news for Scotch & Soda’s employees across the globe, despite sharing that not all employees can be kept on board.
“Scotch & Soda is a great brand, and I’m glad to see that it can prosper under the management of a company with a great track record.”
Terms of the deal have not been disclosed. The transaction is subject to customary closing conditions.
Scotch & Soda was launched in 1985, with a current trange that includes menswear, womenswear, kidswear, denim, eyewear, fragrances and accessories.
It operates 253 freestanding stores across Europe, North America, Asia, the Middle East, Africa and Australia, as well as in 7,000 stockists.
The brand's online operations ship to over 70 countries.