Frank And Oak to close 9 stores across Ontario, Quebec and B.C.
The clothing dealer Frank and Oak says he is closing nine shops in Quebec, Ontario and British Columbia by 7 May.
The courts of the court show that the company based in Montreal has 150 employees, but when he was asked for those who will lose the work following the closures, the spokesman Elisabeth de Gramont said he has not yet had such information.
Once the liquidation has started, all sales will be definitive, but the dealer’s e-commerce activity will continue to work, he said.
The move comes after Frank and Oak Filed for the protection of creditors In December.
De Gramont has attributed the closures to the Frank and Oak legal process began in December, when he presented a notice of intention, which helps companies to renovate and avoid bankruptcy, providing creditors with compensation.
After being hit hard by the Covid-19 pandemic, the struggles of the clothing dealer Frank and Oak continued. According to the Quebec retail council, the rise of rapid online trends could play a role in the company’s challenges.
As part of this process, Frank and Oak said that he is facing financial difficulties because Covid-19 has weighed on the profitability of new shops and the issues of the offer chain, including the conflict in Gaza, delayed the shipments of inventory.
The retailer started looking for an investor or buyer in mid -January. Judicial documents claim that the company saw “robust” interest from potential pretenders in the first phase of the trial, but has not yet announced any successful bidder.
