Shoe and accessory retail chain Aldo has succumb to the fate of a series of retailers this week and filed for Chapter 15 bankruptcy protection on Thursday. The retailer has an initial order in Canada under the Companies’ Creditors Arrangement Act and is seeking bankruptcy protection in the U.S. and Switzerland.

Through the restructuring, Aldo plans to “stabilize the business” as it works to build on the company’s nearly 50-year history in the retail fashion industry. Aldo said it plans to exit from bankruptcy as soon as possible, better positioned for long-term growth.

Aldo also said it expects to continue its business during the restructuring process, keeping the e-commerce sites for the Aldo, Call It Spring, and Globo brands operating. Aldo closed all its stores because of the coronavirus and said it will re-open them as local government and health authorities allow.

David Bensadoun, CEO at the Aldo Group, said in a statement, “It is no secret that the retail industry has experienced rapid and significant change over the last several years. We were making strong progress with the transformation of our business to tackle these challenges; however, the impact of the COVID-19 pandemic has put too much pressure on our business and our cash flows.

“After conducting an exhaustive review of strategic alternatives, we determined that filing under CCAA and related proceedings is in Aldo's best interest to preserve the company for the long term and survive through this challenging period.”

Aldo has more than 3,000 stores worldwide and about $215 million (C$300 million) in a revolving loan that matures in October 2022, Bloomberg reported.

Aldo becomes the third retailer to file for bankruptcy protection this week. J. Crew and Neiman Marcus filed for Chapter 11.

Aldo store
Aldo filed for bankruptcy protection on Thursday. A logo sits on display above the entrance to an Aldo Group Inc. store in London, U.K, on Thursday, Oct. 31, 2019. In the lead-up to the vote, both Labour and the Conservatives are expected to come out with pretty punchy views on tax, innovation and public spending, which could have significant implications for both corporates and consumers, Emma Wall, head of investment analysis at stockbroker Hargreaves Lansdown Plc, said by email. Getty Images/Hollie Adams/Bloomberg
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