Mon, 21 Sep 2020 | BUSINESS SALE
The UK arm of shoe retailer Aldo has been acquired by Birmingham-based investment firm the Bushell Investment Group (BIG). The acquisition of Aldo UK’s trade and assets will see 55 jobs saved, as well as protecting investments of over £30 million.
Aldo UK entered administration in June at the same time as its Canadian parent Aldo Group, which filed for Companies’ Creditors Arrangement Act in Canada (CCAA) while pursuing similar measures for its North American, Irish and Swiss businesses.
The administration, which Aldo UK blamed on the impact of the COVID-19 pandemic as well as “historic profitability challenges and the unprecedented collapse in retail spending in the UK”, saw five of its UK stores permanently close while administrators RSM explored future options for the remaining eight UK stores.
Since appointing RSM, Aldo said that it had successfully traded through a difficult period and had opened three additional stores. The UK arm said it was supported by the wider Aldo Group and that the sale to investment firm BIG “maintains and strengthens” the company’s brand in the UK.
BIG Principal Lee Bushell said: “Working with the Aldo Group we believe there is a real opportunity to develop this globally recognised brand in the UK. This is an exciting opportunity and builds on our recent retail investments.”
RSM Restructuring Advisory Partner Damian Webb said that the deal illustrates "that there is a future for traditional retailers. Although trading is difficult it is clear that if parties work closely with their stakeholders it is possible to secure a successful outcome which benefits all parties.”
In its most recent available accounts, to the year ending January 26 2019, Aldo UK registered total losses of close to £5.5 million. Turnover for the year was £29 million, down from £34 million in 2018, a decline attributed to four underperforming stores which subsequently closed. At the time, the company reported current assets of £35 million and liabilities of £28.9 million.
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