August 19, 2022

The Queens County Citizen

Complete Canadian News World

Aldo violated some conditions of the $10 million grant

Aldo violated some conditions of the $10 million grant

Aldo failed to comply with certain conditions attached to a $10 million grant he received in 2014, prompting the Finance Ministry to impose fines totaling $3 million on him. News magazine.

• Also Read: Aldo’s backlash cost Quebec taxpayers $37.2 million

“Due to the confidentiality of this information, it is not possible for us to detail the reasons that led to these fines,” Dominique Boudreault Lapierre, a spokesman for Investment Quebec, indicated yesterday.

However, we do know that when the grant was received, the shoe giant 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 about $365,000 in government penalties in 2017-2018 and about $372,000 in 2018-2019, Boudrault Lapierre said.

As of May 2020, Aldo still owes $2.27 million in fines to the Ministry of Finance, while seeking shelter from creditors due to its bankruptcy situation.

6% return

As this claim is unsecured, it is treated with those held by Aldo’s general creditors. As per the settlement plan approved by the Superior Court last month, the company will repay approximately 6% of the value of these claims.

That means Quebec Aldo only got back $136,200 of the $2.27 million in penalties owed to them.

These $2.13 million in losses were added to the $34.5 million related to the $40 million loan, for a total of $36.6 million granted in 2014.

The $40 million loan was secured by computer software and hardware, but an accounting assessment commissioned by the Superior Court concluded that their value had diminished in light of Aldo’s financial difficulties.