Two clothing retailers with several downtown Toronto locations announced they are seeking creditor protection.
Frank And Oak, which has 15 stores in Canada, including three in Toronto — at the Eaton Centre, on Queen Street West near Bathurst Street and at The Well on Front Street — said this week it is attempting to restructure.
The stores, which sell clothing for women and men, are owned by UCG Holdings Inc. of Montreal.
"While UCG Holdings Inc. has experienced growth over the past few years, it has struggled to recoup losses experienced after the COVID-19 pandemic," company CEO Dustin Jones said in a letter to creditors.
"The company is therefore seeking to restructure its operations to focus on building a more sustainable business model," Jones wrote.
Frank And Oak was founded in 2012 with a storefront in Montreal's Mile End neighbourhood, according to its website. The clothing retailer is known for its moderately priced basics that gained popularity with millennials as it expanded its Canadian footprint over the last decade.
Court filings indicate the retailer owes more than $70 million to a long list of creditors, including landlords and other businesses. The list includes Canada Revenue Agency ($1.7 million), Shopify ($500,000) and Google ($250,000).
Meanwhile, Comark Holdings Inc., which owns Bootlegger, Cleo and Ricki’s Fashions, said it has commenced proceedings under the Companies’ Creditors Arrangement Act and will shutter stores.
"After careful consideration of all reasonably available options, the company has determined that it is in the best interests of its stakeholders to wind down its Ricki’s and Cleo operations and to close all Ricki’s and Cleo retail store locations," the company said in a news release.
There is a Toronto Cleo location at the TD Centre on Wellington Street West.
The store advertises itself as selling women's clothing, petite clothing and work attire.
On its website Wednesday, Cleo said that "effective Jan. 17, we will no longer accept returns, gift cards, or will be able to redeem or receive loyalty points. We appreciate your understanding".
Comark Holdings said it intends to seek a further court order approving the full liquidation of stock at all Ricki’s and Cleo locations, and certain Bootlegger stores. The stores will remain open during this process.
The company said it will continue to explore opportunities with respect to Bootlegger through the CCAA process, which will include reducing its retail footprint to "better position the company in today’s retail environment."
Comark Holdings Inc. currently has 221 clothing stores across Canada.
