Frank And Oak Closing Most Stores in Canada Amid Debt Crisis

Montreal-based retailer Frank And Oak has confirmed it will shutter the majority of its Canadian stores by May 7, 2025, as the company continues its court-supervised restructuring process. The announcement comes as Frank And Oak and its parent company, Unified Commerce Group (UCG), seek a buyer for the once high-flying fashion brand.

A total of 10 stores are expected to close, including prominent locations at CF Carrefour Laval, Place Ste-Foy, CF Rideau Centre in Ottawa, and two shops in Vancouver. Stores in Montreal’s Stanley Street and St-Viateur, once seen as flagship concepts, will also shut down. The company has confirmed that its e-commerce platform will continue to operate, and stores in the Greater Toronto Area will remain open for now.

Retail Expert: “They Surfed a Wave — Then It Crashed”

Frank And Oak was once seen as a model for modern, sustainable fashion. Founded in 2012 by Ethan Song and Hicham Ratnani, the brand gained national attention for its minimalist aesthetic and eco-conscious values. But its fast rise may have masked deeper issues.

“They caught an amazing wave,” said retail expert Carl Boutet. “They were part of that hipster Brooklyn aesthetic, and they had incredible branding. But they took on way too much venture capital and tried to scale too fast.”

Boutet added that the problem wasn’t just the rapid expansion — it was how that growth was financed. “They were losing money and kept expanding. Venture capitalists were okay with it at first. The thinking was: ‘Get the market share now and figure out profit later.’ But profit never came.”

Digital marketing costs were another culprit. “The cost of customer acquisition skyrocketed on platforms like Instagram and Facebook,” said Boutet. “They were expecting scale efficiencies that never materialized.”

Millions in Debt and a Second Restructuring

Frank And Oak filed for creditor protection under the Bankruptcy and Insolvency Act in December 2024, citing $71 million in debt. Secured creditors, including UCG and Desjardins, are owed $55.5 million, while unsecured creditors are owed $14.6 million.

Among the major unsecured claims:

• $3.5 million to the Canada Border Services Agency (CBSA)
  
• $1.7 million to the Canada Revenue Agency (CRA)
  
• $529,000 to Shopify
  
• $504,000 in prepaid customer cards

Dustin Jones, CEO of UCG, acknowledged in a December letter to creditors that the brand never fully recovered from the impacts of the pandemic. “Despite significant growth over the past few years, the company has struggled to recover from losses incurred as a result of the COVID-19 pandemic,” wrote Jones.

Signs of Interest from Bidders — But No Clear Path Yet

Court filings indicate that Frank And Oak has received “robust” interest from prospective buyers. However, no names have been disclosed, and there are no guarantees a sale will be completed.

Boutet noted that the company’s leases in areas like Stanley Street in Montreal might attract other retailers. “I’ve told my friends in vintage retail to take a look at those spaces. The foot traffic is already there, and it’s the right customer demographic,” he said.

For now, Frank And Oak has announced that liquidation sales are underway, and all sales will be final once those begin. The company has not indicated how many of its approximately 150 employees across headquarters and retail locations could be impacted.

Sustainability Efforts and a B Corp Pivot

After being acquired by UCG in 2020, Frank And Oak pivoted to a stronger emphasis on sustainability and received B Corporation certification. But the effort failed to win back enough market share.

“They tried to do the B Corp thing, which is great,” Boutet commented. “But beyond the badge and the clothing, it didn’t really come through in the experience. They weren’t Patagonia.”

Even as a sustainability-focused brand, Frank And Oak struggled in a market flooded with inexpensive options from global e-commerce players.

The Rise and Fall of a Canadian Fashion Darling

Frank And Oak’s origin story began with optimism. Launching as a direct-to-consumer online retailer, it quickly expanded into brick-and-mortar locations and built a reputation for modern, ethically made fashion. Its experiential stores and sleek marketing struck a chord with millennial consumers.

But the very model that fueled its early success became a liability. “They opened too many stores, moved too fast, and didn’t build a stable financial base,” said Boutet. “They were just one of many digital-native vertical brands that struggled with scale.”

By 2020, facing $19 million in debt, the company filed for creditor protection for the first time. UCG, a New York-based firm specializing in distressed retail turnarounds, acquired Frank And Oak later that year, attempting to salvage the brand.

What’s Next for Frank And Oak?

The immediate future involves winding down most store operations while attempting to restructure under court supervision. UCG has signaled a desire to continue the e-commerce side of the business and maintain a reduced store footprint.

But the viability of Frank And Oak as a retail brand hinges on attracting a strategic buyer — someone willing to invest not just in the name, but in its sustainability promise and design ethos.

“Frank And Oak could still have a future,” said Boutet, “but it needs a clearer identity and a realistic financial model. The hype isn’t enough anymore.”

Key Stores Closing by May 7:

• Place Ste-Foy (Quebec City)
  
• Carrefour Laval (Laval, QC)
  
• CF Rideau Centre (Ottawa)
  
• Cordova Street and 4th Avenue (Vancouver, BC)
  
• Dix30 (Brossard, QC)
  
• Stanley and St-Viateur (Montreal, QC)
  

Remaining Stores:

• GTA (including Toronto and suburbs)
  

More from Retail Insider: 

• Frank And Oak Files for Bankruptcy Protection Amid $71M in Debt 
• New Owner of ‘Frank And Oak’ to Expand Brand (2021)