Dive Brief:
- Canadian fashion brand Frank and Oak will shutter its U.S. operations by the end of April, according to an FAQ webpage on its U.S. site.
- The move – part of the brand’s larger liquidation efforts – was moved up further “due to growing uncertainty around tariffs and customs,” making it more challenging to continue its cross-border operations.
- The brand — owned by Unified Commerce Group — is also planning the closure of its Canadian stores, with ten of its locations set to shutter in the first week of May as part of “ongoing proceedings under the BIA (Bankruptcy and Insolvency Act),” according to an emailed statement from Unified Commerce Group Chief Brand Officer Elisabeth de Gramont. Frank and Oak currently lists 14 stores on its website.
Dive Insight:
Frank and Oak is hardly the only company dealing with the volatility of rising trade tensions between the U.S. and its global partners.
China on Friday increased tariffs on U.S. goods to 125% after the Trump administration raised its total rate on China to 145%. U.S. tariffs on Canadian goods have see-sawed over the past few months, with the latest update being that previously implemented tariffs on goods imported from Mexico and Canada are not impacted by a 90-day pause on other tariffs announced by the Trump administration last week.
Additional U.S. tariffs on a variety of goods from other countries have the potential to impact even brands that are based in the U.S., as smaller companies lack the negotiation power that larger retailers have with international partners.
Beyond the upcoming store closures, De Gramont said Frank and Oak “will continue to share additional details regarding additional impacted locations, closure timelines, and customer accommodations, including final sales events.” The company’s website continues to operate, the executive added.
The brand’s court proceedings began with a Notice of Intention filed in Canada in December 2024. An NOI is a move under the BIA “that allows financially troubled corporations the opportunity to restructure their affairs” and is often the first stage in a restructuring process, according to PwC Canada.
Canadian department store Hudson’s Bay Co. filed for the equivalent of bankruptcy protection in March, citing the Trump administration’s new tariff policies among the causes. The company at the time operated 80 Hudson’s Bay, three Saks Fifth Avenue and 13 Saks Off 5th stores in Canada.
Frank and Oak was founded in 2012 by Hicham Ratnani and Ethan Song in Montreal. Unified Commerce Group announced its investment in Frank and Oak in October 2020 after the fashion brand filed an NOI for a proposal in June 2020.
Unified Commerce Group describes itself as “a growth accelerator for direct-to-consumer fashion and apparel brands.” The company — which also owns brands including Greats and Spiritual Gangster — in December announced a majority investment in Utah-based womenswear brand Böhme.