The retail sector is going through difficult times. The branches of the fashion chain Scotch & Soda will also disappear from city centers.
The fashion brand Scotch & Soda is ceasing operations in its almost 40 stores in Germany at the end of August. Around 290 people will lose their jobs, as the provisional insolvency administrator, Holger Rhode, told dpa. In most stores, next Saturday will be the last day of sales. Around five stores could possibly stay open longer to sell the remaining goods.
The employees were informed on Tuesday, said insolvency expert Rhode. Most employees will be laid off in September. The owner of the rights to the brand and goods, a private equity fund based in the USA, had no interest in transferring either to a new investor or agreeing a corresponding license, it was said.
Search for investor
According to Rhode, talks are underway with a fashion chain. The focus is on a possible takeover of locations and staff. An investor would then have to come to an agreement with the landlords of the properties, said Rhode. Half of the chain’s branches are in Baden-Württemberg and North Rhine-Westphalia.
The German branch of the Dutch fashion brand, Scotch & Soda Retail GmbH, filed for insolvency at the district court in Düsseldorf in June. According to its own information, the company recently generated annual sales of 25 million euros in Germany. The parent company in the Netherlands, which is also insolvent, had already recently ceased operations.
Source: Stern
