Canada’s retail industry is starting the year with several brands seeking creditor protection and closing stores.
Women’s apparel company Comark Holdings Inc. says it will shutter all of the stores under its Ricki’s and Cleo banners as it files for creditor protection.
Court documents show the Ontario-headquartered company operates 75 Ricki’s stores, 54 Cleo stores, 20 joint locations and about 19 sites the brands split with Comark’s other banner Bootlegger.
A court-appointed monitor says Comark’s profitability has been negatively impacted by the pandemic, a November 2021 ransomware attack, more competition from ultra low-cost fashion retailers and supply chain and vendor issues.
Meanwhile, UCG Canada Holdings Inc., which operates as apparel brand Frank and Oak, says it is seeking creditor protection while it explores options to restructure its business. It says one of those options may be a sale of the Montreal-based company with 15 stores.
Court filings say the move is necessary because Frank and Oak has failed to recoup losses experienced during the aftermath of the COVID-19 pandemic.
This report by The Canadian Press was first published Jan. 8, 2025.
Tara Deschamps, The Canadian Press