MONTREAL — The Aldo Group Inc. says its North American creditors voted in favor of its restructuring plan and settlement, nearly two years after the shoe company filed for protection from its creditors.
MONTREAL — The Aldo Group Inc. says its North American creditors voted in favor of its restructuring plan and settlement, nearly two years after the shoe company filed for protection from its creditors.
The Montreal-based company says the vote is a crucial step in its efforts to opt out of protection under the Companies’ Creditors Arrangement Act.
Some additional legal and administrative steps remain to be completed over the next few weeks, including the finalization and approval of a deal in Switzerland, before the company can fully emerge from legal proceedings.
Martin Rosenthal, of E&Y’s court-appointed monitor, says he is satisfied to find a fair settlement with the creditors.
The restructuring process allowed the company to stabilize the business as it underwent organizational transformation to focus on profitable core competencies.
CEO David Bensadoun, whose father, Aldo, founded the chain in 1972, said the impact of the COVID-19 pandemic was putting too much pressure on business and cash flow.
“Today, after an in-depth restructuring process from which we announce our imminent exit, we know that the Companies’ Creditors Arrangement Act was the right way to go to solidify the financial foundations of the Aldo Group and ensure the sustainability of the company. “, he said in a statement.
The fashion retail industry, which is already undergoing a drastic change as part of the shift to online shopping, has been hit hard by a pandemic that has closed storefronts across the world and slumped retail revenues. ‘clothing.
This report from The Canadian Press was first published on April 26, 2022.
The Canadian Press
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