Comark Holdings Inc. and UCG Canada Holdings Inc., owners of prominent Canadian clothing brands, have filed for creditor protection, citing challenges stemming from the pandemic, cyberattacks, increased competition, and supply chain disruptions. Comark has announced the closure of all Ricki's and Cleo stores, while UCG Canada, operating Frank and Oak, is evaluating its future.
The new year is off to a rough start for Canada 's retail industry, with two companies seeking creditor protection and closing stores while they consider how to move forward
The company, which court filings say has 2,056 employees in Canada, said it would seek a future court order to liquidate some of the Bootlegger stores. Its lawyers did not respond to a request for comment. "Certain vendors have stopped shipping new merchandise and have stated that they are not willing to commence production for summer and fall product merchandise," Kassam said.
"An abundance of excess inventory sits on rails in the stores at the end of each season. They are inundated with inventory and deep markdowns which tells me they don’t know what their customer wants.""The assortment was dull and boring," she said. "The sales associates didn’t have sales training and lacked customer service skills. Meaning, I was greeted and told about the sale but that was it.
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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.
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Ricki's and cleo retail brands closing, Bootlegger restructuringSeveral Canadian fashion retailers will be closing their doors after ownership company Comark Holdings announced it has filed for creditor protection.
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Canadian Retail Brands Seek Creditor Protection Amidst Store ClosuresSeveral Canadian retail brands are struggling, leading to store closures and filings for creditor protection. Comark Holdings Inc., owner of Ricki's and Cleo, is shutting down all its stores due to pandemic impacts, a ransomware attack, competition, and supply chain issues. Frank and Oak is also seeking creditor protection while exploring restructuring options, including a potential sale.
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