On May 8, 2023, Scotch & Soda Canada Inc. and Scotch & Soda Retail Canada Inc., fashion retailers operating within Canada, filed a Notice of Intention (NOI) to make a proposal under bankruptcy protection. This development followed the bankruptcy filing by their Dutch parent company in the Netherlands during March. Amid these proceedings, Bluestar Alliance, a brand management firm based in New York, acquired Scotch & Soda. This acquisition, announced in March, secured the brand's continuation across its significant markets.

The financial stability of Scotch & Soda Canada and its retail counterpart had been in jeopardy since the bankruptcy of their parent company began. The acquisition by Bluestar was critical as the Canadian entities depended on the intellectual property that Bluestar had acquired. Without this arrangement, facilitated by the NOI process, the companies would have lost access to the necessary intellectual property to continue operations.

Bluestar Alliance's strategic acquisition did not disclose the transaction value. Legal advisement was provided by KSV, acting as the Proposal Trustee with representation by DLA Piper. Cassels served as the legal counsel for the Canadian entities, while Torys represented Cadillac Fairview in the proceedings.