Major clothing retailer files for creditor protection in Canada

A major Canadian retailer has filed for creditor protection.

Sustainable fashion chain Frank and Oak filed for creditor protection under the Bankruptcy and Insolvency Act in December amid $71 million in debt, according to Retail Insider and Le Journal de Montréal.

Founded in 2012 in Montreal, Frank And Oak has grown with shops across Canada. In Ontario, there are stores on Queen West, the Eaton Centre and The Well in Toronto, Square One Shopping Centre in Mississauga and Rideau Centre in Ottawa.

The brand is known for its eco-friendly practices, ethically sourced materials and responsible fashion.

It is unclear if any stores will close. Retail Insider says “Frank And Oak’s future remains uncertain.”

“Unified Commerce Group has signalled its commitment to steering the brand toward sustainability, but significant challenges lie ahead,” Retail Insider writes.

This is the second time Frank and Oak has struggled financially.

In June 2020, parent company Modasuite Inc., filed for bankruptcy in response to a challenging retail environment that worsened due to the COVID-19 pandemic, according to law firm Osler.

Modasuite sold the business to UCG Canada Holdings Inc. in October 2020.

The company continues to struggle after the pandemic, Dustin Jones, CEO of UCG, said in a letter to creditors in December.

Lead photo: Frank and Oak