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ALDO Group obtains initial CCAA order, seeks to stabilize business
By Caroline Salls
Pittsburgh, May 7 – ALDO Group Inc. obtained an initial order under the Companies’ Creditors Arrangement Act and plans to file for similar protection from creditors in the United States and Switzerland, according to a company news release.
The company intends to use the proceedings to stabilize its business and build on its legacy in retail fashion.
The initial CCAA order provides for a stay of proceedings for an initial period of 10 days, subject to extension thereafter as the court deems appropriate, and the appointment of Ernst & Young Inc. as monitor.
The company said it will work to exit the CCAA process as soon as possible and be better positioned for long-term growth.
“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 release. “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.
“Throughout the process, ALDO expects to carry on business while it develops and implements a comprehensive restructuring plan across the organization.”
The company said ALDO, Call It Spring and Globo’s eCommerce websites will remain open throughout the process. The company’s corporate stores, which are temporarily closed because of the Covid-19 pandemic, will re-open based on the guidelines set by local governments and health authorities.
Montreal-based ALDO Group is a creator and operator of footwear and accessory brands.
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