The UK arm of Canadian footwear retailer Aldo has followed the footsteps of its North America business and filed for administration due to the impact of the Covid-19 pandemic.
Professional services firm RSM has been appointed as administrators, and it has been exploring “future options” for eight Aldo stores in the UK while permanently closing the remaining five.
An exact number of how many jobs will be affected is not yet clear.
The news comes shortly after the footwear retailer filed for creditor protection in Canada, the US and Switzerland and administration in Ireland.
British customers will still be able to shop Aldo online and concessions via Asos and Amazon or in department stores once those stores reopen.
“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,” Aldo said in a statement.
“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.”
It added: ”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.”
Aldo chief executive David Bensadoun 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.”
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