MONTREAL — Aldo Group Inc. says it is filing for creditor protection, stating that it plans to restructure the business as it reels from the hit brought on by COVID-19.
The Montreal-based footwear retailer says e-commerce at its three main brands — Aldo, Call It Spring and Globo — will continue and it plans to reopen some storefronts when able to under local guidelines for each location.
BREAKING: The Aldo chain of shoe stores is under bankruptcy protection as it seeks to restructure. CEO David Bensadoun: “the impact of the COVID-19 pandemic has put too much pressure on our business and our cash flows.” pic.twitter.com/rHJkkal91K
— Richard Dettman (@rwdettman) May 7, 2020
Aldo says it has obtained an initial order under the Companies’ Creditors Arrangement Act from the Superior Court of Quebec.
It has also applied for creditor protection in Canada and the U.S., with plans to do the same in Switzerland.
CEO David Bensadoun, whose father Aldo founded the chain in 1972, says “the impact of the COVID-19 pandemic has put too much pressure” on business and cash flows.
ALDO remains open for business. The recent circumstances have been really overwhelming for everyone, including businesses throughout the globe. This process is necessary to ensure a healthy future so we can continue to serve you for years to come.
— ALDO Shoes (@ALDO_Shoes) May 7, 2020
The retail fashion industry, already undergoing a sweeping shift amid the migration to online shopping, has been hit hard by a pandemic that has shuttered storefronts across the globe and sent apparel revenues plummeting.
This report by The Canadian Press was first published May 7, 2020.
The Canadian Press