Montreal-based footwear retailer ALDO files for creditor protection
Canadian footwear company ALDO Group Inc. is filing for creditor protection and restructuring its business due to the financial pressure imposed by the COVID-19 pandemic.
In a press release on Thursday, ALDO CEO David Bensadoun said the company has had to modify its activities over the past few years to respond to a rapidly changing market, and that the brand has made strong progress.
“However, the impact of the COVID-19 pandemic has put too much pressure on our business and our cash flows,” Bensadoun said. “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 survive through this challenging period.”
At Quebec's daily COVID-19 briefing Thursday, Quebec Premier Francois Legault said he was aware of ALDO's situation and added that his government would do everything to help the retailer, as well as other Quebec companies in a similarly precarious financial situation.
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ALDO has also filed for similar protection in the United States and Switzerland. Ernst & Young Inc. has been appointed to monitor the CCAA proceedings, and the brand hopes to restructure as soon as possible.
The group’s three stores, ALDO, Call it Spring and Globo will continue to operate once Quebec lifts its closure on non-essential businesses, and online stores continue to operate as usual.
"Throughout the process, ALDO expects to carry on business while it develops and implements a comprehensive restructuring plan across the organization,” Bensadoun said.
Bensadoun added that he expects the brand's deep heritage and experienced team to allow it to "emerge from the restructuring process and from the challenges posed by the COVID-19 pandemic."