Canada's ALDO Group announces intention to restructure

08 May '20

2 min read

Pic: Aldo Group

The ALDO Group Inc. recently announced that it sought and obtained an initial order from the Superior Court of Quebec pursuant to the Companies' Creditors Arrangement Act (CCAA). In addition, the Canadian fashion footwear and accessory retailer has voluntarily applied for similar protection in the United States and is about to do the same in Switzerland.

The Montreal-headquartered company will 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. It intends to use the proceedings to stabilise the business and build on its legacy in retail fashion.

"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," company chief executive officer David Bensadoun said in a press release.

Among other things, the initial order provides for a stay of proceedings in favour of the company for an initial period of 10 days, subject to extension thereafter as the court deems appropriate, and the appointment of Ernst & Young Inc. as monitor in the CCAA proceedings.

ALDO, Call It Spring and GLOBO's e-commerce websites will remain open throughout the process. The company's corporate stores, which are temporarily closed due to COVID-19, will re-open based on the guidelines set by local governments and health authorities.

Fibre2Fashion News Desk (DS)

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