Canadian footwear retail chain ALDO has filed for protection under the Companies’ Creditors Arrangement Act (CCAA) to stabilise the business.

It has already received an initial order from the Superior Court of Québec, which will allow for a stay of proceedings in ALDO’s favour for ten days.

The initial ten-day period can be extended based on the court’s discretion.

Similarly, the retailer has also voluntarily sought for related protection and proceedings in the US with same plans in Switzerland.

The company is planning to successfully complete the restructuring process and emerge from it for growth in the long-term.

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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“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.”

Throughout the restructuring process, the company will keep the eCommerce websites of ALDO, Call It Spring and GLOBO open.

Meanwhile, ALDO is preparing to re-open its corporate stores and will remain headquartered in Montreal, Quebec.