And the fashion giant "Scotch and Soda" is going bankrupt


Fashion chain Scotch & Soda, based in Amsterdam, must file for bankruptcy. This is the result of "serious cash flow problems" due to quarantine during the pandemic, high energy prices and inflation, German media reports, N1 Info reported.

Scotch & Soda was founded in Amsterdam in 1985. The company produces clothing for men, women and children, as well as accessories and perfumes, and currently has 246 own branches and about 7.000 stores in department stores worldwide, Phoenix magazine reports. "Scotch and Soda" has the most branches in Germany and Great Britain, more precisely, there are 40 stores in each country. Foreign operations are not yet affected by the bankruptcy, and 31 branches in the Netherlands will remain open.

Dusseldorf-based Pick & Kloppenburg (P&K) also filed for insolvency in early March, and the company's challenges are similar to those of Scotch & Soda. In P&K, all 67 points of sale in Germany will remain open without restrictions, and customers will be able to continue shopping in the online store. However, there will definitely be some changes. The Adler fashion chain has already done that. Bankruptcy proceedings were set to open in July 2021, after which Adler brought in a new owner and financier.

After almost two years, the fashion chain concentrates on its 130 branches, the stationary business is stable. Adler boss Simon Schröter no longer expects big developments from online trading. High costs, low profit – this is how the online business of fashion chains can be summed up.

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