Two Canadian clothing retailers that underwent restructuring during the pandemic have sought creditor protection once again, underscoring a challenging time for the industry as consumers cut down on unnecessary spending and stores face competition from online fast-fashion sellers.
Just before the holidays, the owner of Montreal-based fashion retailer Frank and Oak also sought creditor protection under the Bankruptcy and Insolvency Act, a lower-cost option compared to CCAA that requires companies to propose a restructuring plan within a shorter time period. Frank and Oak was founded in 2012 by former Deloitte consultants Ethan Song and Hicham Ratnani. The brand initially focused on selling fashions online to millennial men, and later opened brick-and-mortar locations and expanded into women’s clothing. At the time of its last restructuring it had 20 stores, and now operates 15 in Quebec, Ontario and British Columbia.
Comark has faced supply chain issues that have delayed shipments of seasonal merchandise, forcing it to mark down products. Like other retailers, the company was also affected by rail and port strikes last year, as well as protests at some of its vendors’ factories in Bangladesh.