Montreal-based sustainable fashion retailer Frank and Oak has filed for creditor protection for a second time, citing a significant debt of $71 million. The application, submitted shortly before the holidays, comes amidst ongoing financial challenges tied to the pandemic’s lingering impact.
Frank and Oak, owned by New York-based Unified Commerce Group (UCG) since 2020, initially sought creditor protection that year, addressing a $19 million debt incurred during the pandemic. This earlier restructuring led to the closure of its Queen West women’s store in Toronto in mid-2020.
Court documents reveal that the current debts include substantial amounts owed to landlords and textile suppliers. In December, UCG CEO Dustin Jones acknowledged the difficulties in a letter to creditors, noting the company is exploring restructuring options to stabilise operations. Potential strategies include securing new investments or identifying a buyer for the brand.
“The primary goal is to preserve the business, safeguard jobs and explore potential solutions, including attracting an investor or identifying a buyer for the brand,” the company stated in a press release.
Despite the financial strain, Frank and Oak plans to maintain normal operations across its 15 Canadian stores, including three in Toronto—on Queen Street West, at the Eaton Centre, and The Well—minimising disruption for employees and customers.
Founded in 2012, Frank And Oak began as a local favourite in Montreal’s Mile End, aiming to inspire a new generation of creatives and entrepreneurs. It has since grown into one of Canada’s leading lifestyle brands, dedicated to responsible fashion through the use of sustainable materials and fair labour practices, creating products that benefit both people and the planet.
