Shoe shop Aldo has collapsed into administration - and some stores will never reopen
Shoe chain Aldo has collapsed into administration after its Canadian parent firm Aldo Group confirmed it has drafted in administrators at insolvency specialists RSM.
Aldo has announced that five out of its 13 UK shops will not reopen.
Impact of coronavirus
Aldo Group said it was "necessary" to place the UK arm of its business into administration due to the impact of coronavirus.
Aldo Group currently operates stores in more than 100 countries, including Canada, the US, Saudi Arabia and Singapore.
This move has resulted in the permanent closure of five Aldo stores in the UK, but the location of these five stores has not yet been revealed. It is also currently unknown how many staff will be affected by this announcement.
The retailer recently filed for creditor protection in Canada, the US and Switzerland, and administration in Ireland.
Administrators will now explore options for the remaining eight shops.
Customers in the UK can continue to purchase Aldo footwear online or at Selfridges, House of Fraser and Debenhams, when their stores reopen.
The temporary closure of clothing and footwear stores during the lockdown period in the UK has also had a significant impact on other businesses, with clothing outlets Oasis and Warehouse closing permanently, resulting in the loss of 1,800 jobs.Debenhams, too, entered into administration for the second time in a year in April, forcing some of its branches to stay shut permanently.
Where are Aldo’s stores?
Aldo, which first opened its UK store in 2002, has eight stores in London, with the rest in Manchester, Watford, Croydon, Thurrock and Kent.
David Bensadoun, chief executive officer of the Aldo Group, said, "It is a difficult decision to close our stores in the UK market, but it is unavoidable given the current business environment and the impact of the Covid-19 pandemic.
"We thank our associates, customers and vendors in the UK for being a part of our story since 2002."