Vancouver apparel company Oak + Fort seeks creditor protection

Canadian clothing brand Oak + Fort has announced that it has filed for creditor protection in order to restructure its operations. The Vancouver-based company cited a combination of factors, including U.S. tariffs, as contributing to a decline in consumer confidence and spending.

According to court documents, Oak + Fort owes more than $25 million to creditors, including landlords who did not receive rent payments for May. The company attributes some of its financial struggles to the expansion of its retail footprint, with 26 new stores opening in Canada and the U.S. over the past four years. This rapid expansion reportedly led to a lack of investment in its e-commerce platforms, further exacerbating its financial woes.

Despite the challenges it faces, Oak + Fort has stated that it will continue to operate its stores and e-commerce business during the restructuring process. Founded in 2010 as an online boutique, the brand has since grown to include 42 stores across Canada and the U.S., offering a range of womenswear, menswear, accessories, jewelry, and home goods.

Retail strategist David Ian Gray, founder of DIG360, commented on the challenges facing the retail sector, noting high interest rates and decreased consumer spending as key factors. He highlighted the impact of the tariffs on retailers like Oak + Fort, suggesting that other companies may encounter similar obstacles in the future.

Despite its current financial difficulties, Oak + Fort has garnered a loyal following, particularly in its home market of Vancouver and British Columbia. However, the brand’s struggles serve as a cautionary tale about the risks associated with rapid expansion and the importance of maintaining a strong online presence in today’s retail landscape.

Customers like Christy Wong, a New York native and fan of Oak + Fort, expressed shock at the news of the brand’s financial challenges. Wong, who frequents the retailer’s outlet in New York, shared her disappointment at the prospect of losing a beloved shopping destination.

As Oak + Fort navigates its restructuring process, it remains to be seen how the brand will adapt to the changing retail landscape and emerge from this challenging period.