One of the leading footwear brands in the world, Aldo is seeking protection from its creditors by declaring bankruptcy.

In Canada, the company has been seeking protection under the Companies’ Creditors Arrangement Act from the Superior Court in Quebec and is filing for bankruptcy in US under Chapter 15 along with preparing to do the same in Switzerland.

The court filings indicated that the company sold US $ 1.2 billion worth of merchandise by the end of February this year against losses of merchandise worth US $ 74.8 million in Canada and US $ 52.8 million in USA.

The company did not pay rent for its stores for April and May, but the lockdowns have drained the cash reserves leading to their effort to seek protection as they restructure the company.

Although their stores remain closed until guidelines from concerned authorities in each country, the Aldo, Call It Spring and Globo websites remain open for orders during the bankruptcy proceedings.

“With our deep fashion footwear heritage, experienced leadership team, extensive omnichannel capabilities and loyal customer base, we firmly believe that we will emerge from the restructuring process and from the challenges posed by the COVID-19 pandemic. We will come out stronger and well-positioned to continue leading the way in fashion retail,” Aldo CEO David Bensadoun said.