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FRANK AND OAK to be acquired by UNIFIED COMMERCE GROUP
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Frank and Oak is the latest clothing retailer to seek creditor protection as it faces challenges dealing with the COVID-19 pandemic, although the company intends to continue to sell its products online. Unified Commerce Group (UCG) announced on Friday a strategic investment in Canadian sustainable fashion brand Frank And Oak. The transaction is expected to be approved by the Superior Court of Quebec this week. Provided such approval is obtained, it is anticipated that the transaction will close shortly thereafter.
Canadian clothing retailer Frank and Oak clothing retailer filed for creditor protection
Founded in 2012 by Hicham Ratnani and Ethan Song, Frank And Oak eventually opened 16 locations across Canada, including two in Montreal. UCG plans to take Frank and Oak global. The firm stated its goal to fuel a Frank and Oak expansion back in the United States, as well into new markets such as Asia.
Like many retail brands worldwide, Frank And Oak has been significantly impacted by the Covid-19 pandemic. According to Le Journal de Québec, 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.
The canadian retailer has previously been backed by the likes of Rho Canada Ventures, Caisse de dépôt et placement du Québec (CDPQ), Goodwater Capital, and Investissement Québec.
The Frank And Oak chain of clothing stores is the latest Montreal-based retailer to file for bankruptcy protection due to the impacts of the COVID-19 pandemic, although the company intends to continue to sell its products online.
The retail sector has been hit hard by the pandemic which forced the closure of non-essential stores to help slow the spread of the novel coronavirus.
Unified Commerce Group to acquire Frank And Oak
The brand’s restructuring and its newly announced partnership with UCG is to be implemented through an asset sale transaction for which Modasuite Inc., the current Frank And Oak operator, is seeking the approval of the Superior Court of Quebec.
According to the provincial register of businesses, the montreal based retailer employs between 100 and 249 employees in the province.
Like many brick-and-mortar retailers, Frank And Oak was forced to close its stores amid COVID-19.
The company began to re-open its locations across Canada within the last month, in accordance with local health and safety regulations.
As UCG and Frank And Oak embark on their partnership, together they will work to further Frank And Oak’s commitment to sustainability, and introduce the brand to new markets. Frank And Oak will proudly remain headquartered in Montreal – the city that inspired its creation and continues to fuel its evolution. Frank And Oak is one of many Canadian retailers trying to stay afloat amid the Covid-19 crisis, including womenswear chain Reitmans, footwear brand Aldo, and outdoor retailer MEC.
About Unified Commerce Group
Unified Commerce Group (UCG) is a New Retail group seeking to acquire and scale purpose-driven brands across the largest global retail economies. Founded by Dustin Jones and Greg Freihofner, UCG was developed with a new vision for the retail industry: to unlock global opportunities for new and existing retail brands through expansion into the global retail economies. Combining an unparalleled operating network with data and technology, UCG will provide brands with multi-disciplinary expertise in each operational vertical with a world class network to ensure long-term growth and profitability while offering the opportunity to compete on a global scale. UCG is headquartered in New York City with offices in Shanghai and Hong Kong.
For more information, please visit UnifiedCommerceGroup.com
About Frank And Oak
Combining style, design and technology since it was founded in 2012, Frank And Oak offers collections of clothing and accessories for men and women that are thoughtfully designed and well suited to the lifestyles of its customers. Present on the web and in several boutiques across Canada, the brand provides a personalized online experience to hundreds of thousands of members, surpassing its role as a retailer to reinvent the customer experience. Inspired by ethical thinking and with an eye to the future, Frank And Oak upholds the values of equity, diversity and inclusion and works to promote them in its communities. Frank And Oak is certified B Corporation®, meeting the highest standards of social and environmental performance, public transparency, and legal accountability in the industry.
For more information, please visit FrankAndOak.com.