Canadian retailer Frank And Oak files for bankruptcy protection
Frank And Oak is the latest clothing retailer to file for bankruptcy protection, due to the impacts of the Covid-19 pandemic.
The Canadian retailer, which reportedly has debts amounting to $19 million, filed a notice of intent on June 22, with plans to file a proposal under the Bankruptcy and Insolvency Act.
In March, Frank And Oak was forced to close its 16 store locations amid the Covid-19 pandemic, and like many other retailers is now feeling the impact.
Launched as an e-commerce-only brand for men in 2012, the company has since expanded into brick-and-mortar, as well as into womenswear, with the launch of its first women’s collection in fall 2016.
While its foray into retail is expected to come to an end, the brand intends to continue to focus on its digital platforms and online offering.
Since its inception, the company has raised a series of funding rounds including $20 million in financing in 2018 for it to advance its digital and technological features. The company’s list of investors include Rho Canada Ventures, Caisse de Dépôt et Placement du Québec (CDPQ), Goodwater Capital, and Investissement Québec.
According to LinkedIn, there was a shakeup at the company earlier this year, which suggests some internal instability.
Co-founder Ethan Song moved on from the company in 2019, while Jeremy Brown, former CFO of Sephora, appears to have taken over the CEO role in January 2020. Meanwhile, co-founder Ratnani is listed as COO, vice-president, secretary, and treasurer.
The clothing chain employs over of 200 people and has an annual turnover of about $40 million.
Frank And Oak is one of many retailers and fashion labels trying to stay afloat amid the crisis and joins the likes of Reitmans, Neiman Marcus and J. Crew in filing for creditor protection.
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