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.
Accounting firm PricewaterhouseCoopers 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. …