ICB » Fashion » Aldo files for bankruptcy owing to dip in sales during Covid-19 lockdown

Aldo files for bankruptcy owing to dip in sales during Covid-19 lockdown

In May 2005 ALDO was introduced to India with the first store opening in Mumbai, Phoenix High Street. ALDO India provides an unparalleled selection of the latest footwear and accessories for both men and women, with on-trend styles at a fair price. It is being run in India by the famous franchiser- Major Brands.

Famous footwear and accessories brand, Aldo has filed for Chapter 15 bankruptcy in the US. This move would be applicable for its stores in Switzerland, the US, and its home country Canada. The outbreak of COVID-19 has put a lot of pressure on the brand, therefore, in order to seek protection, the company was forced to takes the stride.

The bankruptcy process is being managed by consulting firm EY.

“ALDO is one of the world’s leading fashion footwear and accessory brands with a solid track record of growth and profitability for almost half a century. It is no secret that the retail industry has experienced rapid and significant change over the last several years,” Aldo CEO David Bensadoun said in a statement released May 7.

“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,” Bensadoun added.

Filing for bankruptcy is a way to reach a settlement with its creditors and help the business stay afloat. With this, the brand aims to focus on its operations and bounce-back. Aldo is an enormous fashion retailer with a total of 8000 employees and 700 across the globe

“Aldo has reiterated its engagement towards its franchisee network and the fact that they are an integral part of their success… The protection afforded by the reorganization proceedings will allow the retail organization to “right-size” our owned and operated brick and mortar business while enabling us to confidently supply our franchisee partners without disruption,” the group said in a statement.

However, this decision does not have any major impact on the brand’s business in India. “We have a long-standing association with Aldo Group International and share a strong relationship with them,” said Tushar Ved, President, Major Brands (India). “We don’t see this transition affecting India operations in any way. We launched the first-ever Aldo store in India, in Mumbai,

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