Aldo breached some conditions of $10 million grant

Aldo failed to meet certain conditions of a $10 million grant

UPGRADE DAY

Aldo breached some of the conditions of a $10 million grant in 2014, forcing the Ministry of the Economy to impose penalties totaling $3 million ;$, learned The Journal.

“It is not possible for us to communicate in detail the reasons which led to these penalties, because of the confidentiality of this information”, indicated yesterday Dominik Boudreault Lapierre, spokesperson for Investissement Québec.

We do know, however, that at the time of receiving the grant, the shoe giant had committed to creating at least 400 jobs at its Montreal headquarters from 2014 to 2019.

In 2015, Aldo laid off dozens of employees in Quebec and Asia in an effort to streamline its organizational structure.

Aldo paid the government penalties of nearly $365,000 in 2017-2018 and approximately $372,000 in 2018-2019, said Mr. Boudreault Lapierre.

At the time of safe from its creditors due to its insolvency, in May 2020, Aldo still owed $2.27 million in penalties to the Ministry of the Economy.

6% Money Back

As this claim is unsecured, it has been treated with those held by ordinary creditors of Aldo. Under a plan of arrangement approved by the Superior Court last month, the company will reimburse approximately 6% of the value of these debts.

This means that Quebec has only recovered 136 $200 on the $2.27 million penalties Aldo owed him.

These losses of $2.13 million are in addition to those of $34.5 million which are linked to a $40 million loan, also granted in 2014, for a total of $36.6 million.

The $40 million loan was secured by software and computer equipment, but the accounting estimate retained by the Superior Court concluded that their value had diminished, in the context of Aldo's financial difficulties.

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