Scotch & Soda, the Amsterdam-based men's and women's lifestyle brand, has filed for bankruptcy in the Netherlands due to "severe cash flow issues" brought on by a combination of factors, including the COVID-19 pandemic, war in Ukraine, and inflation.

Despite recording record sales of €342.5 million for the 2022 fiscal year, Scotch & Soda cited a "structural cash flow deficit" as the reason for its failure to absorb the negative effects of the pandemic and high inflation.

The bankruptcy will not affect entities outside of the Netherlands, and the brand's 32 stores in the country will remain open while the company searches for a buyer. In December 2021 and January 2022, store closures in the Netherlands caused a direct loss of €20 million, which was particularly damaging to the company.

Scotch & Soda operates 252 stores worldwide and is carried in 7,000 retailers globally.