ALDO to permanently close almost half of its stores in Canada
It's been a little more than two months since ALDO announced it was filing for creditor protection, and it seems the footwear company will be closing nearly half of its stores in Canada as a result.
According to Retail Insider, more than 40 per cent of the Montreal-based brand's Canadian locations either won't reopen post-COVID-19, or will close their doors within the next few months.
"Like many other fashion retailers, we have been operating in a challenging retail environment over the last several years. Two years ago, we designed and began executing a comprehensive plan to restructure the business," reads an ALDO Group announcement from May 8.
"We were making strong progress, but the impact of the COVID-19 pandemic has put too much pressure on our business. We believe that the restructuring process that we have undertaken is the best course of action to put the ALDO Group on a solid foundation and ensure the long-term sustainability of the business."
The announcement also indicates that they "expect to close several stores" over the next six months, though it says they could not confirm exactly which stores would be closing until they start the restructuring process.
The ALDO Group also said that while it's impossible to predict exactly how long the process of restructuring will take, their goal is to emerge from these proceedings as quickly as possible.
"However, the process can take several months," they wrote.
The closure news comes as many other traditional retail stores are experiencing financial hardship as a result of the pandemic as well as changing consumer habits, with brands such as Victoria's Secret, J. Crew and Frank and Oak filing for bankruptcy and/or shutting down stores in recent months.
Let me get this straight, Victoria’s Secret is closing all its Canadian stores. Aldo & spring are in bankruptcy currently and Nordstrom is closing the majority of it’s Canadian stores 😭😭😭😭😭😭😭😭😭😭😭😭😭😭😭— angelica pickles ♚ (@xbrittnee) May 23, 2020
Still, ALDO maintains that they are not going out of business and will continue to operate throughout this process.
"Restructuring proceedings simply affords the ALDO Group the time to restructure its business and, ideally, emerge in a better, more sustainable state," notes the May announcement.
"We believe that the restructuring process that we have undertaken is the best course of action to put the ALDO Group on a solid foundation and ensure the long-term sustainability of the business."
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