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.
Long established and highly profitable on-line retailer of premium quality rattan/wicker home furniture/storage products. Established as one of the country's leading suppliers of a large range of rattan products for the modern home. The products are...
RELOCATABLE
The company specialises in domestic and industrial garden machinery, cleaning equipment, spares and parts. Products include, pressure washers, vacuum cleaners, hedge trimmers, strimmers and heaters.
LEASEHOLD
A market-leading retailer of a diverse range of DIY products for clients throughout the UK. Functions as a one-stop shop for all of its clients’ requirements, providing complete solutions.
FREEHOLD
|
26
|
|
Feb
|
Hanson-owned brickwork contractor closes down | BUSINESS NEWS
Brickwork firm Irvine-Whitlock, a subsidiary of building mat...
|
25
|
|
Feb
|
Fairstone secures further backing from PE firm TA Associates | BUSINESS NEWS
Acquisitive wealth management firm Fairstone Financial Manag...
|
24
|
|
Feb
|
Nestlé acquires recipe kit firm SimplyCook | BUSINESS SALE
Nestlé has strengthened its position in the e-commerc...
Sign up to receive our acquisition alert emails to get your FREE guide
|
02
|
|
Dec
|
Bonmarché falls into administration | ADMINISTRATION
Fashion retailer Bonmarché has fallen into administra...
|
21
|
|
Sep
|
Aldo UK acquired out of administration by investment firm | BUSINESS SALE
The UK arm of shoe retailer Aldo has been acquired by Birmin...
|
28
|
|
Aug
|
Burrito chain Chilango acquired out of administration | BUSINESS SALE
London-focused burrito chain Chilango has been acquired out ...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources