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Clothing retailer Frank and Oak has announced the closure of all 14 of its retail locations in the coming weeks while simultaneously selling its intellectual property to Lamour Group and Thread Collective Inc., a Montreal-based firm. This decision is part of a broader restructuring effort aimed at navigating financial challenges.
According to a statement issued by the company, the Superior Court of Quebec has approved the sale, facilitating a transition to a new phase for the Frank and Oak brand.
While the brand itself is set to persist, the original parent company, UGC Canada Holdings Inc., is anticipated to file for bankruptcy and cease its ongoing operations. As part of this transition, existing inventory will be liquidated, although e-commerce will remain operational for Canadian customers during this period.
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The new management team will explore potential avenues for the Frank and Oak brand’s future, including opportunities for a potential relaunch in specific markets or through targeted channels.
The challenges faced by Frank and Oak were exacerbated by the impacts of the COVID-19 pandemic and disruptions in supply chains, as noted in a notice of intention the company filed last December.
As this significant transition unfolds for Frank and Oak, it reflects broader trends in the retail industry, where many companies are reevaluating their strategies in the face of economic pressures and shifting consumer behavior.
Source
globalnews.ca