The UK arm of footwear retailer Aldo has been placed into administration as a result of the Covid-19 pandemic and historic profitability challenges.
The company said the unprecedented collapse in retail spending in the UK and globally also put too much pressure on the business to continue operating in the UK. 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, Aldo said in a statement.
Customers in the UK can continue to purchase Aldo branded fashion footwear and accessories on the Aldo UK website. Products can also be found at Selfridges, House of Fraser and Debenhams as those stores reopen. Stock is also available on Asos and Amazon.
“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,” says David Bensadoun, CEO of the Aldo Group. “We thank our associates, customers and vendors in the UK for being a part of our story since 2002.”
The announcement follows the Aldo Group’s voluntary decision to file for protection under the Companies’ Creditors Arrangement Act in Canada (CCAA) on 7 May, and similar protection in the US (Chapter 15) and Switzerland. On 20 May, the company began proceedings to appoint a liquidator for its Ireland business.
Aldo will continue to have a presence in 100-plus countries. The company says it 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.
The company’s e-commerce sites will remain open throughout the process in select regions, and its corporate and franchise stores outside of the UK will reopen as Covid-19 government and public health restrictions lift.