Montreal-based shoe chain Aldo Group is seeking protection from its creditors in Canada, the United States and Europe because of disruptions caused by COVID-19.
Founded in Montreal in 1972 by Moroccan immigrant Aldo Bensadoun, the chain has grown to have more than 8,000 employees at 700 company-owned stores around the world.
But like many other retailers, the shoe brand has been pummelled by the COVID-19 pandemic.
“The impact of the COVID-19 pandemic has put too much pressure on our business and our cash flows,” CEO David Bensadoun said.
The company is asking courts in Canada and the U.S. for protection from creditors while it restructures the business. In Canada, the company has filed under Companies’ Creditors Arrangement Act, the law that covers businesses that can’t pay their debts. It plans to pursue similar protections under Swiss and U.S. law.
“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,” Bensadoun said.
The CCAA filing gives the company protection from its creditors for at least 10 days until it can come up with a plan.