Canadian fashion brands Ricki's and Cleo will close after their parent company revealed it has filed for creditor protection. 'After careful consideration of all reasonably available options, the company has determined that it is in the best interests of its stakeholders to wind down its Ricki's and Cleo operations and to close all Ricki's and Cleo retail store locations,' reads the statement.
The company also owns the clothing brand Bootlegger, which will undergo a restructuring that includes 'reducing its retail footprint.' Comark Holdings added that it intends to seek a further court order approving the full liquidation of all Ricki's, Cleo, and certain Bootlegger stores. All company sites show a notice telling shoppers that effective January 17, they will no longer accept returns and gift cards or be able to redeem or receive loyalty points. The store has been owned by New York-based Unified Commerce Group (UCG) since 2020. That year, it first sought creditor protection due to pandemic-related financial challenges. In court filings, the company says it continues to face challenges related to the effects of the pandemic and is considering options to possibly restructure its business
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Canadian Clothing Retailers Seek Creditor Protection Amid Industry ChallengesTwo Canadian clothing retailers, Comark Holdings Inc. and Frank and Oak, have filed for creditor protection, highlighting the difficulties faced by the retail sector due to decreased consumer spending and competition from online fast-fashion retailers. Comark, owner of Ricki's, cleo, and Bootlegger, is closing its Ricki's and cleo stores and plans to consolidate Bootlegger locations. Frank and Oak, acquired by Unified Commerce Group in 2020, is seeking a viable path forward, potentially involving a sale, as it grapples with pandemic-related losses.
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Two Canadian Retail Giants Seek Creditor Protection Amidst Industry WoesComark Holdings Inc. and UCG Canada Holdings Inc., owners of prominent Canadian clothing brands, have filed for creditor protection, citing challenges stemming from the pandemic, cyberattacks, increased competition, and supply chain disruptions. Comark has announced the closure of all Ricki's and Cleo stores, while UCG Canada, operating Frank and Oak, is evaluating its future.
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