The clothing retailer Frank and Oak says he is closing nine stores in Quebec, Ontario and Britanic Columbia before May 7.
Judicial documents show that the Montreal headquarters has 150 employees, but when asked how many will lose their work as a result of the closures, Gramont’s Elisabeth spokeswoman said he still did not have that information.
Once the liquidation begins, all sales will be final, but the retailer’s electronic commerce business will continue to operate, he said.
The measure occurs after Frank and Oak requested the protection of creditors in December.
Gramont attributed the closures to the legal process that Frank and Oak began in December, when he presented a notice of intention, which helps companies restructure and avoid bankruptcy while providing creditors with any compensation.
After being beaten by the Covid-19 pandemic, the Reta Retaorist Frank and Oak’s struggles have continued. According to the Quebec Retail Council, the increase in rapid fashion trends online may be playing a role in the company’s challenges.
As part of that process, Frank and Oak have said that it faces financial difficulties because COVID-19 weighs the profitability of the new stores and the problems of the supply chain, including the conflict in Gaza, delayed inventory shipments.
The retailer began looking for an investor or buyer in mid -January. Judicial presentations say that the company saw a “solid” interest of possible suitors in the first phase of the process, but has not yet announced successful bidders.
