- Shareholders from the USA did not want to sell or license Scotch & Soda’s trademark rights or supply additional goods to the German locations. Business operations had to be discontinued.
- Insolvency administrator Holger Rhode is currently negotiating intensively with potential investors to transfer locations without the Scotch & Soda brand.
- The insolvency proceedings were opened at the beginning of September. Most employees were laid off when operations ceased.
Düsseldorf, September 5, 2024 The business operations of the insolvent Scotch & Soda Retail GmbH, the German subsidiary of the Dutch fashion brand Scotch & Soda (S&S Europe BV), had to be discontinued on August 31. Insolvency administrator Holger Rhode cited the main reason as being that the rights holder of the brand and the goods, a private equity fund based in the USA, showed no interest in transferring both to a new investor or agreeing on a corresponding license.
Rhode is currently negotiating intensively with investors who would like to continue operating former Scotch & Soda locations with their own concepts. “Scotch & Soda has many good locations in attractive locations in large cities and mid-sized cities with high purchasing power,” says Rhode. He sees opportunities to transfer various locations to new investors who would then also employ Scotch & Soda employees. A potential investor would then have to come to an agreement with the individual landlords of the properties. The first landlords have already signaled their basic willingness to do so.
Since business operations were suspended at the end of August, most of the 290 employees have been laid off. They will have to be given notice of termination in September. Around 25 employees are still employed by the GmbH, supporting the insolvency administrator’s team in the further processing. Six branches will remain open for a few more weeks, where the remaining goods will be bundled and sold.
Scotch & Soda Retail GmbH, based in Düsseldorf, filed an application for the opening of insolvency proceedings with the responsible district court in Düsseldorf on June 13, 2024. The court then appointed attorney Holger Rhode, partner of the nationwide law firm Görg, as provisional insolvency administrator. Rhode is supported by restructuring expert Dr. Raul I. Taras, also a partner of the Görg law firm. The responsible district court in Düsseldorf opened the insolvency proceedings at the beginning of September 2024.
As the insolvency administrator of the German company, Rhode has no influence on orders placed via the online shop.
About Scotch & Soda Germany
Scotch & Soda Retail GmbH is a fashion company with around 40 branches nationwide and part of the internationally known Scotch & Soda brand. The company is supplied by the parent company S&S Europe BV from the Netherlands. In Germany, the company recently generated an annual turnover of 25 million euros with 290 employees.
About the insolvency administrator
Lawyer Holger Rhode from Düsseldorf has been appointed as an insolvency administrator and trustee at various courts for many years. The restructuring expert is a long-standing partner of the Görg business law firm. The firm is one of Germany’s leading independent business law firms and one of the largest German insolvency law firms. Around 300 highly specialized lawyers and tax consultants work in 31 insolvency administration offices nationwide. Among them are numerous insolvency and restructuring experts who have already attracted attention nationwide in well-known insolvency and restructuring proceedings.
