Frank And Oak filed for creditor protection twice in 5 years — $71M debt, stores closed

Frank And Oak was founded in 2012 in Montreal by Ethan Song and Hicham Ratnani as an online-only menswear brand with a focus on sustainable materials and ethical production. It quickly gained a following in Canada for its direct-to-consumer model and modern designs, expanding into womenswear and opening physical stores across Montreal, Toronto, Vancouver, and Halifax. By the late 2010s it was one of Canada's most prominent homegrown fashion startups with 15+ locations.

The brand first filed for creditor protection in 2020 with $19 million in debt, a casualty of pandemic-driven store closures. Unified Commerce Group (UCG) acquired it out of that first restructuring and CEO Dustin Jones took over. But the second recovery never stuck. By December 2024, Frank And Oak filed for creditor protection again — this time with $71 million in total debt ($55.5M secured, $14.6M unsecured). Creditors included Desjardins, the Canada Revenue Agency ($1.7M), Shopify ($529K), and $504K owed to prepaid gift card holders.

The company cited lingering pandemic losses, inflation, a weakened Canadian dollar, rising operating costs, and intense competition from global fast-fashion giants Shein and Temu. In April 2025, the Superior Court of Quebec approved the sale of the Frank And Oak brand and intellectual property to Lamour Group and Thread Collective Inc. All 14 remaining stores closed, inventory was liquidated, and the original corporate entity filed for bankruptcy.