Frank And Oak Files Bankruptcy Amid $71M Debt

Frank And Oak Files Bankruptcy Amid $71M Debt

It’s the end of an era for one of Canada’s most recognized fashion retailers. Frank And Oak has confirmed that it will be shutting down nine of its brick-and-mortar locations by the end of April, including seven in Quebec — with more closures likely on the horizon.

Which Frank And Oak Locations Are Closing?

Here’s the list of stores scheduled to close:

  • Place Ste-Foy – Quebec City, QC
  • Carrefour Laval – Laval, QC
  • Cordova St. – Vancouver, BC
  • Quartier DIX30 – Brossard, QC
  • Stanley St. (Men’s and Women’s) – Montreal, QC
  • St-Viateur (Men’s and Women’s) – Montreal, QC
  • CF Rideau Centre – Ottawa, ON

Liquidation sales will roll out at these stores in the coming weeks, and all purchases will be final sale.

Why Is Frank And Oak Closing Its Stores?

The Montreal-based retailer has been under financial strain since 2020. In December, its parent company filed for creditor protection under Canada’s Bankruptcy and Insolvency Act, citing ongoing economic fallout from the COVID-19 pandemic.

According to court documents, the company owes approximately $71 million to a wide range of creditors, including textile suppliers, landlords, and utility companies.

What Happens to the Brand Now?

While the physical stores are closing, Frank And Oak’s online store will remain active — at least for now. The brand, which started as a digital-first company in 2012, was built around a modern, eco-conscious aesthetic. It expanded rapidly to physical retail spaces before financial headwinds slowed growth.

Frank And Oak was acquired in 2020 by Unified Commerce Group, a company focused on scaling sustainable retail brands.

Will There Be More Closures?

It’s very likely. Company spokespeople have said legal proceedings are ongoing, and more changes may be announced depending on the outcome. For now, shoppers should watch for updates — and take advantage of the final sales at closing stores.

Store closures often leave employees uncertain about their job security, final pay, or severance entitlements. If you’re a Frank And Oak employee affected by the shutdown, know this: you may still be entitled to compensation, even if the company is under creditor protection.

How Can Whitten & Lublin Help?

Frank And Oak’s restructuring doesn’t erase its obligation to pay severance or wages. But when a company enters creditor protection, employees become unsecured creditors, often waiting behind landlords and suppliers, which makes recovering  their wages and severance amounts challenging.

If your employer is shutting down or seeking creditor protection, it’s crucial to speak with an employment lawyer. Whitten & Lublin can help you understand your legal rights and next steps. Contact us online or at (416) 640-2667.

 

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