Jan. 8, 2025 "Frank And Oak seeks creditor protection while Ricki's and Cleo shutter stores in retail shakeup": Today I found this article by Jenna Benchetrit on CBC. I copied and pasted the first half of the article about Frank and Oak.
Montreal-based retailer Frank and Oak has filed for creditor protection for the second time this decade, seeking relief from $71 million in debt.
The sustainable fashion brand filed for creditor protection just before the Christmas holiday, according to Le Journal de Montréal, which first reported the news on Monday. It has been owned by New York-based fashion firm Unified Commerce Group (UCG) since 2020.
As Frank and Oak's creditors, UCG and Desjardins are owed $55.5 million, and the company owes an additional $14.6 million to unsecured creditors, including Canada Border Services Agency, the Canada Revenue Agency and Shopify.
Accounting firm PricewaterhouseCoopers Inc. has been appointed its trustee during the proceedings.
The brand first sought creditor protection in June 2020 as the retail sector struggled with the closure of non-essential stores during the COVID-19 pandemic.
The company said in court filings that it's still facing challenges from that time.
Damien Silès, director of the Retail Council of Quebec, told CBC News other contributing factors include
slow retail spending by consumers,
as well as aggressive competition from ultra-fast fashion brand Shein and online retailer Temu.
A company press release shared with CBC News says Frank and Oak is exploring options to restructure its business. It will continue to operate normally with "minimal" disruption to employees and customers.
"The primary goal is to
preserve the business,
safeguard jobs
and explore potential solutions,
including attracting an investor
or identifying a buyer for the brand," the press release says.
Frank and Oak was launched as an online brand by co-founders Ethan Song and Hicham Ratnani in 2012.
As of this year, it operates 15 brick-and-mortar locations across the country in Quebec, Nova Scotia, Ontario and B.C.
https://www.cbc.ca/news/business/frank-and-oak-creditor-protection-second-time-1.7425941
Apr. 10, 2025 "Frank And Oak to close 9 stores across Ontario, Quebec and B.C.": Today I found this article on CBC:
Apparel retailer Frank And Oak says it is closing nine stores across Quebec, Ontario and British Columbia by May 7.
Court documents show the Montreal-based company has 150 employees, but when asked about how many will lose their job as a result of the closures, spokesperson Elisabeth de Gramont said she did not yet have that information.
Once the liquidation begins, all sales will be final, but the retailer's e-commerce business will continue to operate, she said.
The move comes after Frank And Oak filed for creditor protection in December.
De Gramont attributed the closures to the legal process Frank And Oak began in December, when it filed a notice of intention, which helps companies restructure and avoid bankruptcy while providing creditors with some compensation.
As part of that process, Frank And Oak has said it is facing financial difficulties because
COVID-19 weighed on the profitability of new stores,
and supply-chain issues, including the conflict in Gaza, delayed shipments of inventory.
The retailer began searching for an investor or buyer in mid-January. Court filings say the company saw "robust" interest from potential suitors in the first phase of the process, but it has yet to announce any successful bidders.
https://www.cbc.ca/news/business/frank-oak-close-stores-1.7506907
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