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31-589: Albert "Aldo" Bensadoun (born 1939), is a Canadian-Moroccan businessman. He is the founder and executive chairman of Aldo , a retail shoe company based in Montreal , Quebec, Canada. Bensadoun's family foundation donated $ 25 million to McGill University to help found the Bensadoun School of Retail Management. Aldo Bensadoun ( Hebrew : אלדו בן סעדון ) was born in Fez to a Moroccan Jewish family; his father

62-533: A company became insolvent liquidation followed because that was the consequence of the only insolvency legislation which then existed - the Bankruptcy Act and the Winding-Up Act . Almost inevitably liquidation destroyed the shareholders' investment, yielded little by way of recovery to the creditors, and exacerbated the social evil of devastating levels of unemployment. The government sought, through

93-576: A nearby location in Saint-Laurent, Montreal. In July 2022, it announced that it had completed its restructuring process. The company once operated the now closed or rebranded banners Little Burgundy (which it sold to Genesco ), Simard & Voyer, Christian Shoes, Access, Pegabo, Transit, Stoneridge, Locale, Feetfirst and FIRST (which was the American version of Feetfirst). In January 2024, Authentic Brands Group licensed its Sperry brand to

124-457: A petition for CCAA relief appears to be more like a defensive tactic than a bona fide attempt to restructure, it may prefer to order receivership instead. Where no such compromise or arrangement has been negotiated, the court, on application, may issue an order, lasting for 30 days, any proceedings against the debtor company, while negotiations are held to secure a compromise or arrangement with creditors and shareholders. The court may extend

155-683: A two-thirds vote by value of the claims involved) the court may then approve it, and it will be binding on all persons, including trustees in bankruptcy. They cannot be approved by the court if provision is not made for settling "super-priority" claims (as they are known under the BIA) relating to: In addition, no amounts relating to "equity claims" may be authorized by the court under a compromise or arrangement until all other claims are first paid in full. "Equity claims" have been held to include any claims shareholders may have against third parties in certain circumstances. Any interested person may apply to

186-837: Is a recipient of the Order of Canada . He is a recipient of the National Order of Quebec , and the Ordre de Montréal . Bensadoun has been married twice. His first wife was a Scottish Protestant ; they had two sons: David (born 1970) and Douglas (born 1973). His second wife is Dianne Bibeau; they have a daughter, Daniela (born 1991). His son David is the CEO of the Aldo Group and is married to Isabelle Poirier. Bensadoun lives in Montreal. In 2012, his son, David, along with Patrick Beaule were

217-627: The CCAA and are thus subject to stay. Subsequent jurisprudence suggests that determining the status of such orders will be case-specific. In addition, the court has broad discretion in administering any other issues that may arise. As the Act says, ...the court, on the application of any person interested in the matter, may ... make any order that it considers appropriate in the circumstances. This has allowed for very creative applications for resolving difficult scenarios, including: In order to assure that

248-506: The CCAA , to create a regime whereby the principals of the company and the creditors could be brought together under the supervision of the court to attempt a reorganization or compromise or arrangement under which the company could continue in business. The Supreme Court of Canada did not have a chance to explain the nature of the CCAA until the groundbreaking case of Century Services Inc. v. Canada (Attorney General) in 2010. In that case,

279-571: The U.S. Department of Labor found that a factory in Los Angeles producing Aldo goods was paying employees under minimum wage. Companies%27 Creditors Arrangement Act In 1990, the British Columbia Court of Appeal discussed the background behind the introduction of the CCAA in one of its rulings: The CCAA was enacted by Parliament in 1933 when the nation and the world were in the grip of an economic depression. When

310-624: The secured or unsecured creditors — essentially creating a pre-packaged insolvency — the court may summarily order that it proceed to be voted on by each class of creditors concerned, and, where necessary, by the shareholders as well. Whether a creditor is secured or unsecured is governed by the BIA. However, the court is not bound to accept an application under the Act, and it can terminate previously granted orders (and even declare them to have been void ab initio ) where an applicant has not made full and fair disclosure of all material facts. Where

341-614: The Aldo Group for North American operations. Aldo already works closely with Authentic on brands like Brooks Brothers and Roxy . In 2010, the company made major announcements, which led to major expansion in the American market. The Aldo Group and JCPenney announced the launch of the Call It Spring brand, which would sell as a shop-in-shop concept in JCPenney stores across the United States. The Call It Spring concept

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372-507: The Court gave a detailed explanation of the nature of insolvency law in Canada. The Bankruptcy and Insolvency Act (BIA) provides a more rules-based approach for resolving a corporate debtor's insolvency, which must be observed strictly. The CCAA, on the other hand, provides a more discretionary approach that is remedial in nature, which therefore must be broadly construed. Although the CCAA

403-521: The U.S. are owned by Aldo Group, while international stores are franchised. Aldo shoes were founded in Canada in 1972 as a footwear concession within Le Château . The original group included stores in Montreal , Ottawa , Quebec City , and Winnipeg . Aldo Bensadoun known today as a global shoe giant built his empire starting in Montreal. After four generations, the Bensadoun family continues into

434-503: The business and financial affairs of the company, who must be a trustee in bankruptcy under the Bankruptcy and Insolvency Act . The monitor is required to investigate and report back to the court on the company, advise the court with respect to any actions that need to be taken, and to carry out any other functions in relation to the company that the court may direct. Where a compromise or arrangement has already been negotiated with

465-410: The circumstances". The decision notes the interrelated nature of proceedings under the CCAA and BIA: [77] The CCAA creates conditions for preserving the status quo while attempts are made to find common ground amongst stakeholders for a reorganization that is fair to all. Because the alternative to reorganization is often bankruptcy, participants will measure the impact of a reorganization against

496-463: The company launched the "Transit" banner in Canada, which later became "Spring" upon launching in the US. Five years later, they started the "Feetfirst" banner, which caters to an older clientele. Additionally the company operates "Globo Shoes" geared towards the family market. In 2010, the company once again began to evolve when it introduced, in Canada, a new store concept called "Lōcale", which will replace

527-759: The company's operations will continue during the proceedings, the court has the power to declare that the assets of the company are subject to a security or charge with respect to certain matters, and may further order that such charges rank ahead of those of secured creditors. These include: This "super priority" status is construed broadly, and has been held to even defeat statutory deemed trusts (such as those concerning pension plan deficiencies and vacation pay that exist in Ontario), as well as in rem claims such as maritime liens that are found in maritime law . The court may also order: The CCAA has been described as being similar in nature to Chapter 11 proceedings in

558-409: The court for an order under the Act. This is normally the debtor company, but a creditor can also do so. The court having jurisdiction is the superior court for the province in which the company's head office or chief place of business in Canada, or, in the absence of that, where any of its assets are situated. When the application is made, the court is required to appoint a monitor with respect to

589-456: The courts have held that there is "no reason…why the same analysis cannot apply during a sale process that requires the business to be carried as a going concern", In that regard: Negotiated compromises and arrangements may deal with any matter, including claims against directors and amendments to the articles of incorporation or letters patent incorporating the company. When they have been approved by each participating class of creditors (by

620-552: The current "Feetfirst" stores. "Lōcale" is a footwear and accessories boutique-style concept store aimed at young professionals; it offers a number of brand names. The company has also revived the Pegabo brand, which used to be its own chain of stores and is selling the brand in Feetfirst and Lōcale stores. In spring 2011, the Pegabo brand also launched at Hudson's Bay stores in Canada. In 2017, Aldo Bensadoun's son David Bensadoun

651-420: The devastating social and economic effects of bankruptcy or creditor initiated termination of ongoing business operations can be avoided while a court-supervised attempt to reorganize the financial affairs of the debtor company is made. This is noted together with s. 11 of the CCAA, which states that a court may, "subject to the restrictions set out in this Act, . . . make any order that it considers appropriate in

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682-522: The first Canadian four wheel team to complete the Dakar Rally . Aldo (brand) The Aldo Group , branded and stylised as ALDO , is a Canadian multinational retailer specializing in shoes and accessories. Established in 1972 in Montreal , Quebec , the company was founded by Aldo Bensadoun . Its corporate headquarters are based in Saint-Laurent, Quebec . Stores in Canada and

713-489: The position they would enjoy in liquidation. In the case at bar, the order fostered a harmonious transition between reorganization and liquidation while meeting the objective of a single collective proceeding that is common to both statutes. The scope of the CCAA is quite broad. It applies to any debtor company (or group of affiliated companies) that owes more than $ 5 million, other than: and: No person may terminate or amend — or claim an accelerated payment or forfeiture of

744-574: The protection for any period it sees fit. A stay may be lifted upon application to the court, but only in very restricted circumstances: Provision is made for such stays not affecting investigations undertaken by any regulatory body (other than with respect to any payment that may be ordered), but the court can order the cancellation of such exemption where: However, as noted in Newfoundland and Labrador v. AbitibiBowater Inc. , not all payments required under regulatory orders constitute claims under

775-584: The shoe industry. "Mr. Bensadoun never intended to follow in the footsteps of his father, a shoe retailer in Morocco and France, or his grandfather, a cobbler in Algeria" (Strauss, 2010). Aldo Bensadoun learned Italian to better communicate with his suppliers in Italy, and eventually he cut out the middleman who serviced him between Canada and European manufacturers (Strauss, 2010). The first freestanding Aldo store

806-413: The term under — any agreement, including a security agreement, with any debtor company subject to the CCAA by reason only that proceedings commenced under the CCAA or that the company is insolvent. Agreements can be assigned or disclaimed by the debtor company as a result of the proceeding, by following prescribed procedures. These provisions extend beyond being used only within restructuring plans, and

837-525: Was a shoe retailer in Fez, Morocco and France. Bensadoun moved to the United States for his post-secondary education. He attended Cornell University before relocating to Montreal and graduating from McGill University with a commerce degree in 1964. He worked at Yellow Shoes before founding the precursor to the Aldo Group in 1972 as a stand within the Le Château store in Montreal. As of July 2020, Forbes estimated his net worth at US$ 1.1 billion. Bensadoun

868-542: Was appointed chief executive of Aldo, replacing Patrik Frisk. On May 7, 2020, Aldo announced it would restructure under the Companies’ Creditors Arrangement Act citing the impact of the COVID-19 pandemic . All 6,680 store associates and more than half of the employees at its headquarters have been furloughed. In the midst of its restructuration, the company also move from its mythic headquarters to

899-545: Was expected to be in 600 JCPenney stores by the fall of 2011 and JCPenney would be the only department store retailer of the brand. The Aldo Group also announced that it was partnering with Kohl's department stores to design and produce exclusive footwear products that would be sold under private and exclusive brand names. The new Aldo-designed products were to launch in Kohl's stores for the Spring 2011 season. In December 2012,

930-528: Was opened in Montreal, in 1978. The brand expanded in the 1980s and 1990s, with stores operating under the name Aldo across Canada. The first store outside of North America opened in Israel in 1995. The brand expanded in the 2000s into Saudi Arabia in 2001, England in 2002, and Singapore in 2003. Since then, the Aldo Group, with the Aldo and Spring banners, has further expanded on the international market. In 1991,

961-409: Was originally enacted in 1933, extensive use of it only began in the economic downturn of the early 1980s. Recent legislative amendments of the BIA and CCAA have served to harmonize key aspects, such as the use of single proceedings, a common priority of claims structure, and encouraging reorganization over liquidation. The legislation is remedial in the purest sense in that it provides a means whereby

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