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Montreal’s Frank and Oak has announced plans to close most of its retail locations across Canada by May 7 as it seeks to attract a buyer. This decision follows a legal initiative filed in December 2024, in which the company expressed its intention to restructure in an effort to avoid bankruptcy.
The exact number of employees affected by this closure remains uncertain, but documents filed with the court indicate that Frank and Oak employs around 150 individuals at its headquarters and various retail outlets. Out of approximately 14 stores situated in Quebec, Ontario, and British Columbia, it is expected that 10 locations will shut down and enter liquidation sales.
Elisabeth de Gramont, a representative for Frank and Oak, confirmed to Global News that the following stores are slated for closure:
- Place St. Foy in Quebec City
- Carrefour Laval in Laval, Quebec
- Cordova St. in Vancouver
- West 4th St. in Vancouver
- Dix30 in Brossard, Quebec
- Stanley St. Men’s and Women’s in Montreal
- St. Viateur Men’s and Women’s in Montreal
- CF Rideau Centre, Ottawa
De Gramont noted that the company’s website and e-commerce operations will continue to function during this transition period.
Retail Industry Challenges and Responses
Retail analyst Bruce Winder commented on the situation, stating that Frank and Oak has struggled to maintain its momentum, having initially captured the market’s attention a few years prior. He pointed out that while the brand remains popular among millennials, the COVID-19 pandemic adversely affected its operations.
Winder highlighted the difficulties many retailers face in the current economic landscape, emphasizing that managing a physical store involves significantly higher costs compared to an online operation, at a time when economic conditions and real estate costs are challenging. This announcement coincides with Hudson’s Bay also outlining restructuring plans, which include store closures and liquidations of its own retail spaces.
According to de Gramont, further details regarding the liquidation sales will be disclosed soon, after which all sales will be final.
Recent court filings indicate that Frank and Oak has received significant interest from potential buyers; however, details about specific interested parties remain undisclosed. Notably, as a Canadian retailer, Frank and Oak has an international manufacturing network, which may be influenced by ongoing trade tensions stemming from tariffs imposed during U.S. President Donald Trump’s administration.
Winder expressed that while direct impacts from the tariffs may be limited, they contribute to a broader sense of uncertainty affecting consumer sentiment in Canada, which has notably weakened.
Shifts in Consumer Behavior
The pandemic has drastically transformed consumer habits, a shift exacerbated by tariffs and the trade war climate. In response to Frank and Oak’s difficulties, industry consulting group Arcus highlighted that these challenges reflect systemic pressures redefining the retail market. These include persistent supply chain issues linked to COVID-19, escalating rent prices, and cautious consumer spending amid economic strain.
Moreover, increased competition from international brands, which frequently offer more attractive pricing, has intensified market pressure on Canadian retailers. The emergence of global e-commerce giants like Shein and Temu has made the retail landscape even more competitive, further challenging the position of Canadian entities like Frank and Oak.
Arcus posited that the developments concerning Frank and Oak and Hudson’s Bay serve as crucial reminders for Canadian retailers about the importance of adaptability and innovation in a swiftly evolving market environment.
Source
globalnews.ca