Frank And Oak to close 9 stores across Ontario, Quebec and B.C. | CBC News
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.
After being hit hard by the COVID-19 pandemic, clothing retailer Frank And Oak’s struggles have continued. According to the Retail Council of Quebec, the rise of online fast fashion trends may be playing a part in the company’s challenges.
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.
