Montreal-based footwear retailer Aldo has stopped shipping orders to Ireland and closed its e-commerce site there amid plans to wind down the Irish business.
It comes after the shoe chain filed for creditor protection in Canada, the US, and Switzerland.
The Irish operation consisted of four stores in Dublin, including one at Dundrum Town Centre, as well as an e-commerce arm. But the Covid-19 crisis, coupled with a decline in spending, left the business struggling.
A creditors meeting will be held via Zoom on May 22, where it is proposed that Damien Murran of RSM Ireland will be appointed liquidator, reported The Times.
“This decision was necessary based on the impact of the Covid-19 pandemic, as well as profitability challenges and the unprecedented collapse in retail spending,” a spokesman said.
“These factors put too much pressure on the business.”
The Irish business made revenues of €5.3m in the year to January 27, 2018, but pre-tax losses totaled nearly €260,000.
Aldo joins a list of fashion retailers appointing liquidators in Ireland in recent weeks as the financial toll of the coronavirus crisis continues to escalate. Debenhams, Laura Ashley, Oasis, and Warehouse are some of the clothing brands which have recently closed their Irish stores.