Frank and Oak, a well-known clothing retailer, has announced plans to close all 14 of its physical stores in the coming weeks. This decision is notable in the context of a larger ongoing effort to restructure. Its purpose is to address the company’s ongoing, severe financial challenges, which have been exacerbated by the COVID-19 pandemic and unprecedented supply chain issues.
The retailer filed a notice of intention in December 2023, signaling its struggles to maintain operations amid mounting financial pressures. The closure of its stores will not only affect the company’s retail presence but impact employees and customers who have frequented these locations.
Frank and Oak’s move comes as the company tries to work its way out of financial troubles. The retailer will use this time to liquidate their current inventory, so customers can expect some serious closeout discounts while doing so. That said, e-commerce sales will still be an option for Canadian consumers, offering a channel through which shopping can continue even with many physical stores closed.
In a somewhat surprising and once unthinkable move, Frank and Oak is selling their intellectual property to a upstart company based in Montreal. This new independent company will review a range of opportunities to determine the best path forward for the Frank and Oak brand. Or maybe you need to re-introduce the brand, market by market, channel by channel. If successful, this strategy will help restore its foothold within the intensely competitive world of retail.
With 14 stores nationwide — including locations in Toronto, Vancouver, Montreal, and Quebec City — the closure marks a significant move towards an online-first strategy for Frank and Oak. The most recent chapter of the retailer’s long history of efforts to reshape itself comes as retailers across all sectors face a classic “perfect storm” of challenges.
