Aldo has filed for creditor protection in Canada, with intentions to do the same in the United States and Switzerland.
The Montreal-based retailer, which owns almost 3,000 stores across 100 countries, made the announcement on Thursday, saying, “The impact of the COVID-19 pandemic has put too much pressure on our business and our cash flows.”
The company formally filed for relief under the Companies’ Creditors Arrangement Act (CCAA), which protects it from creditors for at least 10 days until it can come up with a plan to restructure the business.
David Bensadoun, CEO of Aldo, said that the company conducted a review of several alternatives but ultimately decided that filing under CCAA was “in Aldo’s best interest to preserve the Company for the long term and survive through this challenging period.”
“Throughout the process, Aldo expects to carry on business while it develops and implements a comprehensive restructuring plan across the organization,” he said.
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The Aldo Group, which includes Aldo, Call It Spring, and GLOBO, will remain open for business online, and physical stores will reopen in accordance with local COVID-19 restrictions.