The Aldo shoe chain began today a process of judicial restructuring as a result of the closure of its stores due to the pandemic and its level of indebtedness.
The company, based in Montreal, Canada, has more than 3,000 stores around the world, including Puerto Rico. The company applied for judicial protection through the Canada Creditors Agreements Act in Canada and is also seeking similar protection in the United States.Aldo said in a statement.
The pre-petition debt includes a $ 215 million revolving loan with the Bank of Montreal, maturing in October 2022.
Aldo, which also sells accessories, including wallets, was founded by Aldo Bensadoun in 1972. The chain has been trying for several years to stay current in a world of increasingly informal footwear.
This is not the only retail chain that has resorted to bankruptcy protection, in the face of the scourge that the Covid-19 has given its operations. The luxury chain Neiman Marcus Group Inc. filed for bankruptcy in Texas on Thursday, while the clothing chain J. Crew Group Inc. did the same this past Monday under Chapter 11 in the state of Virginia.