Footwear retailer Aldo Group Inc. began a court restructuring process yesterday after the pandemic shuttered stores and worsened the company’s already-struggling business, Bloomberg News reported. The Montreal-based company operates about 3,000 stores and employs 8,000 people worldwide. It requested court protection through the Companies’ Creditors Arrangement Act in Canada, is seeking similar protection in the U.S. and is about to do the same in Switzerland, Aldo said in a statement. Ernst & Young Inc. was appointed as the monitor in the Canadian proceedings. “The impact of the Covid-19 pandemic has put too much pressure on our business and our cash flows,” Chief Executive Officer David Bensadoun said in the statement. “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.” The retailer expects to carry on business while it develops and implements a restructuring plan across the organization, Bensadoun said. Aldo’s pre-petition debt includes a C$300 million ($214 million) revolving loan arranged by Bank of Montreal that matures in October 2022. Aldo has struggled in recent years to maintain relevance in a world of increasing acceptance of casual footwear. Bensadoun said in a 2018 interview that the company was competing with makers of athletic wear as more workplaces embrace casual attire.
