- Aldo Footwear retail chain filed for bankruptcy protection in their home country of Canada, claiming the coronavirus pandemic had placed “too much pressure”
Last week, Aldo Footwear retail chain filed for bankruptcy protection in their home country of Canada, claiming the coronavirus pandemic had placed “too much pressure” on their market and cash flows.
“ALDO is one of the world’s leading luxury footwear and accessories brands, with a strong track record for nearly half a century of success and profitability. It’s no secret that, over the past few years, the retail industry has undergone rapid and dramatic change, “Aldo CEO David Bensadoun said in a statement released May 7.
“We have made good strides in our corporate restructuring to address these challenges; but, the effect of the COVID-19 pandemic has placed too much pressure on our corporate and our cash flows,” said Bensadoun. Aldo said it would take similar steps in the US and Switzerland.
As part of the process, Aldo said it will restructure its organization and resume online operations and rebuild its retail stores in Canada once the limitations on lockdowns have been relaxed.
Aldo has over 8,000 staff worldwide, and, according to documents filed with the court, handles over 700 stories. The bankruptcy process is conducted by accounting firm EY.
Major Brands India, which runs the Indian franchise, said it doesn’t anticipate any impact on Aldo ‘s Indian stores from the recent growth.
“We have a long-standing association with and have a good relationship with Aldo Group International,” said Tushar Ved, Chairman, Major Brands (India). “We do not see this change impacting India operations in any way. We opened the first-ever Aldo store in India, in Mumbai, back in 2005, and since then the brand has spread to every major city in the country.
“In a statement to his franchises, Aldo said the bankruptcy protection filing was done with the purpose of” restructuring and finding a settlement with his creditors to survive as an uninterrupted business.
“Aldo affirmed its commitment to its franchisee network and the fact that it is an essential part of its success … The protection provided by the reorganization process would allow the retail company to” right-size “our owned and operated brick and mortar business while allowing us to provide our franchisee partners with confidence without interruption,” the group said in a statement.
Recently, the international fitness chain Gold’s Gym also filed for bankruptcy protection in their home country US. The pandemic has affected many retail businesses and much such news might be coming in the future.