UCG Canada Holdings Inc., operating as Frank & Oak, filed a Notice of Intention (NOI) to make a proposal under the Bankruptcy and Insolvency Act on December 18, 2024, listing approximately $71 million in liabilities. This includes $55.5 million owed to its sole shareholder, UGC Holdings Inc. The Montréal-based consumer brand, specializing in sustainable apparel, was acquired by UGC Holdings in October 2020 during restructuring proceedings. Despite significant investments and operational shifts, including pivoting from a subscription-based model to multi-channel retail and opening five new stores, Frank & Oak faced persistent financial challenges exacerbated by the COVID-19 pandemic, supply chain disruptions, and geopolitical conflicts.

The company implemented cost-cutting measures, including a 20% workforce reduction, but ongoing financial deterioration necessitated NOI proceedings to restructure and launch a Sales and Investment Solicitation Process (SISP).

PwC was appointed proposal trustee. Legal advisors included Fasken for the company, Stikeman Elliott for the trustee, Parr Brown Gee & Loveless for UGC Holdings, and Gowling WLG for Cadillac Fairview.