Canadian footwear retail chain Aldo has filed for protection under the Companies’ Creditors Arrangement Act (CCAA) in Canada to stabilise the business.
The court restructuring process began last week in Canada, explained Aldo, and it was seeking similar protections in the United States and in Switzerland, to help it stabilise the company in response to the ongoing Covid-19 pandemic that has shut its retail outlets.
Aldo said in a statement that Ernst and Young Inc. had been appointed as the monitor in the Canadian proceedings, adding that it would “work to complete its restructuring in a timely fashion and hopes to exit from the process as soon as possible and better positioned for long term growth”.
Aldo chief executive officer, 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 were 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 our cash flows. 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.”
Aldo appoints Ernst and Young to help restructure business
Throughout the restructuring process, Aldo stated that it would “carry on business” with Aldo, Call It Spring and Globo’s e-commerce websites to remain open. It noted that while brick-and-mortar stores will remain temporarily closed due to Covid-19 it plans to re-open stores based on the guidelines set by local governments and health authorities.
Bensadoun, added: “Throughout the process, Aldo expects to carry on business while it develops and implements a comprehensive restructuring plan across the organisation. With our deep fashion footwear heritage, experienced leadership team, extensive omnichannel capabilities and loyal customer base, we firmly believe that we will emerge from the restructuring process and from the challenges posed by the Covid-19 pandemic. We will come out stronger and well-positioned to continue leading the way in fashion retail.”
The news comes as Aldo launched its latest Disney collaboration inspired by Cinderella and her wicked stepsisters. The Disney x Aldo Cinderella collection gives the glass slipper from the fairy-tale a modern makeover with a translucent slab heel, glitter details and delicate ankle strap.
Other pieces in the collection include translucent Cinderella slide sandals, bright pink and yellow heels and matching bags for the stepsisters, and a Cinderella clutch inspired by the movie poster of Disney’s Cinderella 1973 re-release.