Apparel retailer Frank and Oak says it is closing nine stores across Quebec, Ontario and British Columbia by May 7.
Court documents show the Montreal-based company has 150 employees, but when asked about how many will lose their job as a result of the closures, spokesperson Elisabeth de Gramont said she did not have that information yet.
She says once the liquidation begins, all sales will be final, but the retailer’s e-commerce business will continue to operate.
De Gramont attributed the closures to the legal process Frank and Oak began in December, when it filed a notice of intention, which helps companies restructure and avoid bankruptcy while providing creditors with some compensation.
As part of that process, Frank and Oak has said it is facing financial difficulties because COVID-19 weighed on the profitability of new stores, and supply chain issues, including conflict in Gaza, delayed shipments of inventory.
Frank and Oak began searching for an investor or buyer in mid-January. Court filings say the company saw “robust” interest from potential suitors in the first phase of the process but Frank and Oak has yet to announce any successful bidders.
Related Stories
