Mon, 01 Jun 2020 | ADMINISTRATION
Footwear retailer Aldo UK has entered into administration due to the impact of the COVID-19 pandemic. The company is the UK arm of the Canadian Aldo Group, which has filed for Companies’ Creditors Arrangement Act in Canada (CCAA) and pursued similar measures for its North American, Irish and Swiss businesses.
Five of Aldo UK’s stores have been permanently closed, while administrators RSM are exploring options for the remaining eight stores. Aldo shoes will continue to retail online, as well as through Selfridges, House of Fraser, Debenhams, Asos and Amazon. The number of jobs that will be affected is not clear yet.
In a statement, Aldo Group said: “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.”
”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.”
In its latest set of accounts, to the year ending January 26 2019, Aldo UK registered total losses of close to £5.5 million. Its turnover for the period was £29 million, down from £34 million in 2018, with the decline attributed to four underperforming stores. Four stores subsequently closed. At the time, the company reported current assets of £35 million and liabilities of £28.9 million.
COVID-19 has taken a severe toll on the UK’s fashion and clothing retailers in recent weeks. Monsoon Accessorize was last week said to be close to entering administration, while another shoe retailer, Johnsons Shoes Company, entered administration on May 20.
View the latest distressed UK businesses here.
Has in excess of 2,100 subscribers, all of whom provide reliable, repeat business on an ongoing basis, in addition to a high volume of customers making one-off purchases. Operates from leasehold premises; however, the company could be relocated to a...
RELOCATABLE
Flagship retail store specialising in the highest-end brand of sewing machines. Loyal and affluent clientele coming from all over the UK (and overseas). This business has been a leader in the field for 24 years. The sewing machine market is booming,...
LEASEHOLD
A long-established provider of promotional merchandise both plain and branded for a high-calibre client base. Using a large network of suppliers the company boasts a vastly comprehensive range. Dedicated staff nurture client relationships and promote...
|
07
|
|
Jul
|
Construction contractor owed creditors £11m when it collapsed | BUSINESS NEWS
Lancashire-based contractor Construction Partnership UK owed...
|
06
|
|
Jul
|
Aviation claims specialist enters administration | ADMINISTRATION
Didsbury-based aviation claims specialist Flight Reclaim has...
|
03
|
|
Jul
|
Next completes sale and leaseback of head office and warehouses | COMMERCIAL PROPERTY
High street fashion retailer Next Plc has confirmed the succ...
Sign up to receive our acquisition alert emails to get your FREE guide
|
07
|
|
May
|
Sigma Dynamics purchases Manchester software business out of administration | BUSINESS SALE
Sigma Dynamics has acquired the Dynamics 365 Finance and Ope...
|
14
|
|
Nov
|
Scale manufacturer taken over in MBO | MBO/MBI
Weighing scale manufacturer Marsden Weighing Group has been ...
|
05
|
|
Sep
|
Grantham’s Olde Barn Hotel enters administration | ADMINISTRATION
A very highly rated hotel in Lincolnshire has fallen into ad...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources