Aldo files for bankruptcy protection
Canadian footwear retailer Aldo has filed for bankruptcy protection in Canada after saying that the covid-19 outbreak put too much pressure on iits business and cashflow.
Aldo operates 700 stores and has 8,000 employees across the globe. The company is also looking to file similar proceedings in the US and Switzerland.
The retailer has appointed EY in Canada to oversee the process as it also works to complete a restructuring to position the business for future growth. In the meantime, it will keep its online business running and will re-open it stores in Canada once lockdown restrictions are lifted.
Aldo chief executive David Bensadoun said: “Aldo is one of the world’s leading fashion footwear and accessory brands with a solid track record of growth and profitability for almost half a century. It is no secret that the retail industry has experienced rapid and significant change over the last several years.
“We are making strong progress with the transformation of our business to tackle these challenges: however the impact of the covid-19 pandemic has put too much pressure on our business and cashflows. After conducting an exhaustive review of strategic alternatives, we determined that filing under CCAA and related proceedings is in Aldo’s best interest to preserve the company for the long term and survival through thi challenging period.”
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