The ALDO Group, parent company of the popular shoe retailer ALDO, just announced that they are seeking creditor protection, citing increasing pressure due to the COVID-19 pandemic.
In a press release, the Montreal-based company announced that it has "sought and obtained an Initial Order pursuant to the Companies' Creditors Arrangement Act from the Superior Court of Quebec". They've also applied for similar protection in the United States, and plan to do the same in Switzerland.
In the same press release, Chief Executive Officer David Bensadoun cites the COVID-19 pandemic as the main reason for this filing, saying, "[...]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."
The ALDO Group, which includes ALDO, Call It Spring, and GLOBO will continue to do business through the restructuring process. Websites for each brand remain open for business, and physical stores will re-open based on guidelines set by local governments and health authorities.