Try standing it up and gently pull on cord and release. It may rewind after a few tries. If it does fine, then just be careful how far you pull it out.
If it still won't rewind, you need to take it to an authorized Aerus Electrolux store and have the service tech have a look. There are a few things in the rewind assembly that could be causing it not to.
http://www.aerushome.com/storelocator/
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