Unified Commerce Group (UCG) acquires Frank and Oak. The new New York-based investment fund will become a majority partner of Modasuite, the operator of the Quebec-based retailer of men's and women's clothing.
Posted October 2, 2020 at 12:38 pm
“It was a long process, admits Jeremy Brown, CEO of Frank and Oak since January 2020, in an interview with La Presse. It is a new start for us. Unified shares our values and our vision of sustainability. He is a very good partner who has a lot of experience in sourcing and design. He wants to stimulate our growth internationally.
Recall that Frank and Oak, known for their online apparel sales since 2012, took refuge with his creditors under the Bankruptcy and Insolvency Act in June last year. His debts at the time amounted to $ 19 million. Management said especially the pandemic to justify its difficulties. "It was the hardest time of my career," says Brown, who has worked at Sephora and L Brands in the past. It's October and the uncertainty continues.
Unified has pledged to keep Frank and Oak's Montreal headquarters and all jobs, or about 200. The company, which closed nine stores this summer, still has eleven. It assures us that the customer experience will not be affected. ”Unified is all about brick and mortar, "says Jeremy Brown. The fund wants to keep the 11 stores open and possibly even more open.
The investment in Frank and Oak is the first in the new UCG fund, owned by Dustin Jones and Greg Freihofner. The amount of the transaction was not disclosed.