Shoe retailer Aldo collapses as coronavirus continues to hammer high street
Shoe retailer Aldo has become the latest casualty of coronavirus on the UK high street, as its Canadian parent firm drafted in administrators
Aldo Group said it was “necessary” to place the Aldo UK business into administration due to the impact of the pandemic.
The move resulted in the immediate closure of five of its stores, the company said.
Administrators at insolvency specialists RSM have held onto eight of the retailer’s stores as they look to explore further options for the company.
The company said the collapse was also driven by “historic profitability challenges and the unprecedented collapse in retail spending in the UK and globally”.
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
Customers in the UK can continue to purchase Aldo footwear from its online platform, while its products can also be found at Selfridges, House of Fraser and Debenhams when their stores reopen.
David Bensadoun, chief executive officer of the Aldo Group, said: “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.
“We thank our associates, customers and vendors in the UK for being a part of our story since 2002.”
Last month, the Canadian group filed for bankruptcy protection abroad in a move it said would allow it to “restructure and build on its legacy in retail fashion in other jurisdictions”.
Its failure follows the collapses of Debenhams, Cath Kidston, Laura Ashley, Oasis and Warehouse since the virus forced UK retailers to shut their doors.