Montreal-based retailer Frank and Oak has filed for creditor protection for the second time in less than five years. In December 2024, the sustainable fashion brand sought relief from $71 million of debt, according to Le Journal de Montréal, which first reported the news on Monday.

Frank and Oak had been owned by New York-based fashion firm Unified Commerce Group (UCG) since 2020. According to reports, Frank and Oak’s creditors, UCG and Desjardins, are owed $55.5 million. The company also reportedly owes an additional $14.6 million to unsecured creditors, which include Shopify, the Canada Revenue Agency and the Canada Border Services Agency.

Jennifer Marley, a partner with Toronto-based consultancy Sklar Wilton & Associates, tells strategy the creditor protection reflects less a trend of diminishing brick-and-mortar stores in Canadian retail, and more the need “to be truly omnichannel to win in today’s market.”

“Now, more than ever, it’s important for retailers to be clear about their strategy and to follow up with flawless execution,” Marley says.

Aside from demographics, retailers must clarify what they stand for and what they say. “Frank and Oak is a brand with a clear point of view; something we love to see,” Marley says. “Their clear purpose to ‘Inspire a Better way of Living by creating conscious products that last through time’ is definitely something that is on trend and resonates with many. Did Frank and Oak fail to get this message out there in order to stand with the likes of other ‘eco’ brands like Kotn, Cos and Everlane?”

She adds: “The consumer segments who care the most about sustainability have also been the ones to re-embrace vintage (just walk along Bloor Street West in Toronto, or watch the Golden Globes, to see the resurgence there). Additionally, a post-COVID boom in homemade or ‘me-made’ hand-knitted and sewn clothing has really taken hold with younger consumers. Has Frank and Oak done enough to help these consumers create style wardrobes that really show off their unique personalities?

In June 2020, the men and women’s fashion brand filed for creditor protection near the beginning of the COVID-19 pandemic. According to filings at the time from trustee KPMG, Modasuite – the company that operated as Frank and Oak – had total debts amounting to $19 million, which included more than $6 million owed to Desjardins and $11.9 million to a collection of suppliers, employees, landlords and tax authorities.

However, Frank and Oak’s 2020 difficulties began prior to the pandemic. According to filings, the company recorded pre-tax net losses of $6.3 million and $10.4 million in the previous two fiscal years. For the 10-month period ended in April 2020, the losses had already reached $7.9 million.

Frank and Oak was one of the first online-born brands from the 2010s to make the leap to bricks-and-mortar to drive growth – but much of its financial difficulty has been attributed to physical retail.

In 2022, Frank and Oak attempted to make a comeback, led by Dustin Jones, CEO of UCG, which purchased Frank and Oak in the fall of 2020.