Canadian brand Frank and Oak to close most stores, seek buyer

Montreal-based retailer Frank and Oak says it plans to close the majority of its stores across Canada by May 7 as it seeks to find a buyer.

The move follows a December 2024 legal process where Frank and Oak filed a notice of intention to restructure and avoid bankruptcy.

It is unclear how many employees could be impacted, but court documents show Frank and Oak has 150 workers, including at its headquarters and retail locations. Of the roughly 14 stores in Quebec, Ontario, and British Columbia, 10 are planned to shut down and will feature liquidations.

Elisabeth de Gramont, a spokesperson at Frank and Oak, tells Global News that as of now, the stores facing closures include:

• Place St. Foy in Quebec City
• Carrefour Laval in Laval, Que.
• Cordova St. in Vancouver
• West 4th St. in Vancouver
• Dix30 in Brossard, Que.
• Stanley St. Men’s and Women’s in Montreal
• St. Viateur Men’s and Women’s in Montreal
• CF Rideau Centre, Ottawa

De Gramont adds that the company’s website and e-commerce business “continues to operate during this time.”

“Frank and Oak, unfortunately, has lost some of their mojo,” says retail analyst Bruce Winder. “They came out swinging a few years ago.”

“They’re very popular, particularly with millennials, and COVID really hit them hard.”

Winder also highlighted the challenges facing many retailers today.

“Running a retail operation at the store level is very different and more expensive than running an operation on a website only. The economy is bad … the cost of real estate is high.”

This news comes around the same time Hudson’s Bay announced restructuring plans, leading to the liquidation and closure of most of its stores, which all have a sizable retail footprint.

De Gramont says Frank and Oak will share additional details about liquidation sales soon, and once they begin, all sales will be final.

Court filings reported on by The Canadian Press also say Frank and Oak has seen “robust” interest from potential bidders, but there have been no indications yet on any specific names.

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Although a Canadian company, Frank and Oak has an international manufacturing network, which may see some exposure to the trade war brought on by U.S. President Donald Trump’s tariffs.

Winder says that although the company may not be directly impacted, “it’s more about the uncertainty the tariffs bring to Canadians and the Canadian consumer sentiment that has really taken a hit.”

Consumer habits have also shifted since the pandemic, especially recently with tariffs and the trade war.

Following the news from Frank and Oak, consulting group Arcus released a statement saying the company’s challenges underscore “systemic pressures reshaping the industry.”

Those include lingering supply chain strains from the COVID-19 pandemic and global conflicts, as well as rising rents and constrained vacancies for retail units and “more cautious” spending by consumers facing economic pressures.

It’s also a much more competitive landscape for Canadian retailers with some international brands offering cheaper price points.

“The rise of global e-commerce giants like Shein and Temu has intensified competition, challenging Frank and Oak’s market position,” Arcus says.

The case for Hudson’s Bay and Frank and Oak may be seen as a bit of a wake-up call for retailers in Canada.

Arcus says Frank and Oak’s “situation underscores the need for agility and innovation in the retail sector, as companies must adapt to a rapidly changing environment.”