By Natalia Manzocco
Canadian shoe brand Aldo is filing for creditor protection and will be undergoing restructuring, the company announced today.
The Montreal-based company, which operates Aldo stores as well as Globo and Call It Spring, currently has at least 3,000 locations in over 100 countries.
"It is no secret that the retail industry has experienced rapid and significant change over the last several years," CEO David Bensadoun said in a release.
"We were making strong progress with the transformation of our business to tackle these challenges; however, the impact of the COVID-19 pandemic has put too much pressure on our business and our cash flows."
In Canada, the company has filed under the Companies' Creditors Arrangement Act, which would protect them from creditors for 10 days until a restructuring plan is put in place. Similar filings are underway in the U.S. and Switzerland.
The company adds that online stores will be open as normal throughout the process, while stores that are temporarily closed will be reopening as local authorities permit.
"We firmly believe that we will emerge from the restructuring process and from the challenges posed by the COVID-19 pandemic," Bensadoun said.