Montreal-based sustainable fashion retailer Frank And Oak seeks protection from $71 million in debt, adding to its previous filing in 2020. Meanwhile, the Ontario company behind Ricky's and Cleo announces store closures.
Montreal-based retailer Frank And Oak has filed for creditor protection for the second time this decade, seeking relief from $71 million in debt, while the Ontario company behind Ricky's and Cleo says it will shutter their stores. Frank And Oak , a 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 the Canada Border Services Agency, the Canada Revenue Agency and Shopify.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.After being hit hard by the COVID-19 pandemic, clothing retailer Frank And Oak’s struggles have continue
Frank And Oak Creditor Protection Debt Retail Fashion
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Ricki's and Cleo to close stores while Frank and Oak seeks creditor protectionCanada’s retail industry is starting the year with several brands seeking creditor protection and closing stores.
Read more »
Canadian Clothing Retailers Seek Creditor Protection Amid Industry ChallengesTwo Canadian clothing retailers, Comark Holdings Inc. and Frank and Oak, have filed for creditor protection, highlighting the difficulties faced by the retail sector due to decreased consumer spending and competition from online fast-fashion retailers. Comark, owner of Ricki's, cleo, and Bootlegger, is closing its Ricki's and cleo stores and plans to consolidate Bootlegger locations. Frank and Oak, acquired by Unified Commerce Group in 2020, is seeking a viable path forward, potentially involving a sale, as it grapples with pandemic-related losses.
Read more »
Nanaimo RCMP find stolen Oak Bay car, another still missingThe Oak Bay Police Department says it dealt with several vehicle-related investigations last week, including one report of a stolen car that was later found by Nanaimo RCMP.
Read more »
Driver hits light post in Oak Bay, fails breathalyzer testA driver was handed a 90-day suspension for failing a breathalyzer test after she struck a light post in Oak Bay last week.
Read more »
Oak Bay Criticized for Housing Target Miss, Mayor Calls Provincial Response 'Political Theatre'A year after the BC province issued housing targets, Oak Bay is facing criticism for not meeting its goals. The municipality, however, argues that the province's approach is more political maneuvering than a genuine attempt to solve the housing crisis. Mayor Murdoch points out that they had previously requested assistance from the province when the targets were first announced, but their pleas were ignored.
Read more »
Housing Minister Gives Oak Bay Ultimatum to Meet TargetsThe District of Oak Bay has one month to convince the Housing Minister they can meet their provincial housing targets or face potential intervention.
Read more »