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.
Established in 1956, this family-owned business specialises in quality used cars and 4x4s, serving customers across the UK. Over the decades, it has built a strong reputation for exceptional customer service, reliability, and consistently positive re...
LEASEHOLD
Presently seeking interested parties in a growing South Yorkshire artisan bakery offering multiple sites.
Presently seeking interested parties in this business sale for a garden and greenhouse equipment supplier.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.