On June 22, 2020, Modasuite Inc., doing business as Frank and Oak, a Montréal based leading fashion retailer, commenced restructuring proceedings under the Bankruptcy and Insolvency Act (“BIA”) in response to a challenging retail environment that worsened due to the COVID-19 pandemic, and with the objective of restructuring its business and operations by optimizing its store footprint and leasing costs. As part of the BIA proceedings, Modasuite conducted a process to solicit proposals for sale or investment transactions involving the company.
On October 8, 2020, Modasuite completed a transaction for the sale of its business to UCG Canada Holdings Inc. The sale transaction allows the Frank and Oak brand and business to move forward. UCG plans to continue online and brick and mortar retail operations, with a goal of expanding into the US and Asian markets. Modasuite will continue its efforts to finalize its restructuring proceedings under the BIA.
Osler, Hoskin & Harcourt LLP advised Modasuite Inc. with a team consisting of Sandra Abitan, Julien Morissette, Ilia Kravtsov, Sean Stidwill, Cristina Cosneanu (Insolvency & Restructuring / Litigation), Shahir Guindi, Marisa Corona (Corporate), Alain Fournier (Tax), Julien Ranger (Employment) and Barry Fong (Intellectual Property).