Corporate restructuring and filing for creditor protection has led to mixed results for one company in Burnaby.
Aldo, which sells footwear and accessories, has been an institution in Burnaby’s Metropolis at Metrotown and that location is staying open – at least for now.
The same cannot be said for the Aldo store in Loughed Town Centre, which is currently holding a closing-out sale as the COVID-19 pandemic continues to devastate the retail industry. Burnaby has seen a variety of other stores close in recent months, including Addition Elle, Thyme Maternity, Microsoft and others.
Aldo Group Inc. says it has filed for creditor protection, stating that it plans to restructure the business as it reels from the hit brought on by COVID-19.
The Montreal-based footwear retailer says e-commerce at its three main brands — Aldo, Call It Spring and Globo — will continue and it plans to reopen some storefronts – but not all of them - when able to under local guidelines for each location.
Aldo says it has obtained an initial order under the Companies' Creditors Arrangement Act from the Superior Court of Quebec.
It has also applied for creditor protection in Canada and the U.S., with plans to do the same in Switzerland.
CEO David Bensadoun, whose father Aldo founded the chain in 1972, says "the impact of the COVID-19 pandemic has put too much pressure" on business and cash flows.
The retail fashion industry, already undergoing a sweeping shift amid the migration to online shopping, has been hit hard by a pandemic that has shuttered storefronts across the globe and sent apparel revenues plummeting.
- With files from the Canadian Press
