Bluestar Alliance Makes an Acquisition
Hurley owner Bluestar Alliance announced Monday that it has acquired Amsterdam-based Dutch fashion brand Scotch & Soda, which filed for bankruptcy in March.
Terms of the deal were not disclosed. Scotch & Soda operates 253 stores across Europe, North America, Asia, the Middle East, Africa and Australia, and also has a wholesale business in 7,000 doors. The brand’s e-commerce operations ship to over 70 countries.
Scotch & Soda generated revenues of 342.5 million euros for the 2022 fiscal year. The company blamed the bankruptcy filing on “severe cash flow issues” caused by the pandemic, war in Ukraine, and inflation.
Jasper Berkenbosch, attorney at Jones Day and trustee of the bankrupt entities, said in a statement: “We are happy that we were able to make this announcement following the bankruptcy. We have seen quite some interest from parties to acquire some of the bankrupt assets. The proposal of Bluestar Alliance was by far the best deal for all stakeholders involved.”
“This is good news for quite a large group of employees at Scotch & Soda, even if, unfortunately, not all employees can be kept on board, Erik Schuurs, co-trustee, said. “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.”
Bluestar, which also owns brands such as Bebe and Tahari among others, was a serious contender to buy the surf industry’s largest company, Boardriders, which is home to Quiksilver, Roxy, Billabong, RVCA, DC Shoes and Element. Company insiders tell SES that Authentic Brands Group is now reportedly close to finalizing a deal for Boardriders, however, no public announcement has been made.
For Bluestar, the Scotch & Soda acquisition fits with the company’s goal of expanding its brand portfolio and retail footprint.
“Bluestar continues to strategically build its portfolio and 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,” Bluestar CEO Joseph Gabbay said in a statement.
Ralph Gindi, Bluestar’s chief operating officer, said, “Scotch & Soda is a chic, contemporary lifestyle brand which embodies the free spirit of Amsterdam and is uniquely recognized by consumers everywhere in the world. The niche brand sits on its own and attracts a younger, fashion-conscious consumer who appreciates fine craftsmanship and attention to detail.”
Bluestar plans to continue Scotch & Soda’s retail distribution strategy, according to Gindi.
The Scotch & Soda acquisition is expected to close in the coming weeks.