Leading footwear brand, Aldo is seeking protection from creditors by declaring bankruptcy in Canada, Europe and US. In Canada, the company has been seeking protection under the Companies’ Creditors Arrangement Act from the Superior Court in Quebec and is filing for bankruptcy in US under Chapter 15 along with preparing to do the same in Switzerland.
The court filings indicated that the company sold $1.2 billion worth of merchandise by the end of February this year against losses of merchandise worth $74.8 million in Canada and $52.8 million in US. The company did not pay rent for its stores for April and May, but the lockdowns have drained the cash reserves leading to their effort to seek protection as they restructure the company.
Although their stores remain closed until guidelines from concerned authorities in each country, the ‘Aldo, Call It Spring’ and ‘Globo’ websites remain open for orders during the bankruptcy proceedings.
