The UK arm of footwear retailer Aldo has filed for administration, following in the footsteps of its North America business, as a result of the impact of the COVID-19 pandemic.
The retailer’s Canadian parent company just weeks ago sought creditor protection in Canada, the US and Switzerland.
Aldo UK has now shut five stores, with administrators RSM working to explore “future options” for its remaining eight stores.
The exact number of staff jobs that will be affected is not clear currently.
Aldo Group said in a statement: “The move was necessary based on the impact of the COVID-19 pandemic, as well as historic profitability challenges and the unprecedented collapse in retail spending in the UK and globally. These factors put too much pressure on the business to continue operating in the UK.
”Regrettably, this has led to the immediate closure of five stores. The administrators anticipate maintaining eight stores as they look to explore future options for the company.”
It continued: ”The Aldo Group continues to believe in the strength of its company and brands; Aldo will remain a global brand and still has a strong presence in [more than] 100 countries. The company will use the proceedings to restructure its business and build on its legacy in retail fashion in other jurisdictions, allowing to ensure the long-term stability of the company and its international business.”
David Bensadoun, CEO of the Aldo Group, added: “It is a difficult decision to close our stores in the UK market, but it is unavoidable given the current business environment and the impact of the COVID-19 pandemic.”
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