Aldo falls into administration amid coronavirus troubles

The retailer said it had closed five of its standalone UK stores and appointed professional services firm RSM to explore options for the remaining eight.

In a statement, the retailer said the store closures were a result of the ongoing coronavirus and the “unprecedented collapse” in the UK driven by consumer behavioural changes pre-coronavirus.

The Aldo Group said: “The move was necessary based on the impact of the Covid-19 pandemic, as well as historic profitability challenges and the unprecedented collapse in retail spending in the UK and globally. These factors put too much pressure on the business to continue operating in the UK. 

“Regrettably, this has led to the immediate closure of five stores. The administrators anticipate maintaining eight stores as they look to explore future options for the company.”

“The Aldo Group continues to believe in the strength of its company and brands. Aldo will remain a global brand and still has a strong presence in 100 countries. The company will use the proceedings to restructure its business and build on its legacy in retail fashion in other jurisdictions, allowing to ensure the long-term stability of the company and its international business.”

Customers will still be able to shop the Aldo brand on Asos and Amazon, and at concessions in department stores once they reopen.

Aldo chief executive David Bensadoun 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.”

The struggling shoe retailer recently filed for creditor protection in Canada, the USA and Switzerland, and for administration in Ireland. 

The impact of the pandemic has taken its toll on other UK retailers resulting in administration for brands such as Oasis, Warehouse, Laura Ashley and Cath Kidston.