Canadian sustainable fashion chain Frank And Oak has filed for bankruptcy for the second time, facing $71 million in debt, according to reports from Retail Insider and Le Journal de Montréal.
Founded in 2012 in Montreal, Frank And Oak became a notable name in eco-friendly fashion, offering ethically sourced materials and responsible manufacturing practices. The brand operates stores across Canada, including locations at Toronto’s Queen West, Eaton Centre, The Well, Mississauga’s Square One Shopping Centre, and Ottawa’s Rideau Centre.
Uncertainty Looms for the Brand
It remains unclear whether any of Frank And Oak’s stores will close. According to Retail Insider, the company’s future is uncertain, though Unified Commerce Group (UCG), the brand’s parent company, has expressed its intention to guide Frank And Oak toward financial recovery and sustainability.
“Significant challenges lie ahead,” UCG CEO Dustin Jones acknowledged in a letter to creditors in December, pointing to continued struggles in the post-pandemic retail landscape.
A History of Financial Troubles
This marks the second major financial crisis for Frank And Oak. In June 2020, its parent company, Modasuite Inc., filed for bankruptcy due to difficulties compounded by the COVID-19 pandemic. The business was later acquired by UCG Canada Holdings Inc. in October 2020.
Despite the acquisition and efforts to steer the brand back to stability, the company continues to face headwinds in a challenging retail environment.
Frank And Oak’s bankruptcy filing highlights the ongoing difficulties faced by sustainable fashion brands in balancing eco-conscious practices with financial sustainability.