Canadian Retailers Ricki’s, Cleo, and Frank and Oak Seek Creditor Protection

Comark Holdings and UCG Canada Holdings face closures and restructuring as pandemic losses and market challenges strain operations.

Comark Holdings will shutter all Ricki’s and Cleo stores, affecting over 1,100 employees, while exploring partial closures of its Bootlegger chain.
The company cited pandemic-related losses, a 2021 ransomware attack, supply chain disruptions, and competition from low-cost online retailers like Shein and Temu as key challenges.
Comark owes $61 million to vendors, landlords, and creditors, with lawsuits already filed by some vendors for repayment and damages.
Montreal-based Frank and Oak, owned by UCG Canada Holdings, is seeking creditor protection and exploring potential restructuring or sale of the business.
Frank and Oak, which operates 15 stores, has accumulated $71 million in debt and has struggled to recover from losses incurred after the COVID-19 pandemic.