Five UK stores have been permanently closed, and administrators from professional services firm RSM are exploring “future options” for the remaining eight.
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.”
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.”
David Bensadoun, CEO 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.”
The announcement follows the Aldo Group’s voluntary decision to file for protection under the Companies’ Creditors Arrangement Act in Canada (CCAA) on 7 May, and similar protection in the US (Chapter 15), and Switzerland.
The group’s ecommerce sites remain open in select regions globally, and its stores outside of the UK will reopen as Covid-19 government and public health restrictions lift.
Drapers’ coronavirus update
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