Montreal-based UCG Canada Holdings Inc., which operates as clothing brand Frank and Oak, is set to shutter all 14 of its retail locations in the coming weeks and will sell off its intellectual property as part of a broader wind-down.

The company is being sold to Quebec-based manufacturer Lamour Group, as well as Quebec company Thread Collective, whose brand portfolio includes Bebe, Psycho Bunny, Hurley, and Pajar, among others. While the brand itself will continue to operate, UCG Canada Holdings Inc. is expected to file for bankruptcy and cease all operations.

All 14 Frank and Oak stores, located across Quebec, Ontario, and British Columbia, are scheduled to close by May 18. The brand’s website will remain operational throughout the liquidation process.

Founded in 2012 by longtime friends Hicham Ratnani and Ethan Song, Frank and Oak began as a menswear e-commerce brand before expanding into brick-and-mortar retail and launching its first women’s collection in 2016.

The company is among several Canadian retailers that struggled to recover from the economic impact of the Covid-19 pandemic. Frank and Oak initially sought creditor protection in 2020, leading to the sale of UCG Canada Holdings later that year.

In a second blow, UCG filed again for creditor protection in January 2025. According to court filings, the retailer currently owes approximately $71 million to its creditors.

Coty announced on Thursday that it will restructure in key markets as part of the next phase of its “All-in to Win” transformation program, a move expected to impact approximately 700 positions. 

The global beauty giant, which owns a portfolio of major brands across fragrance, cosmetics, and skincare, is aiming to simplify and scale its operating model, reduce complexity, and sharpen its focus on top innovation and market priorities.

The strategic initiative builds on the company’s efforts launched in fiscal year 2020 at the height of the Covid-19 pandemic, which successfully delivered over $700 million in savings from FY21 to FY24, alongside major gains in gross margin, brand investment, and EBITDA.

“We are committed to building a stronger, more resilient Coty that is well-positioned for sustainable growth,” said Sue Nabi, CEO of Coty. 

“This next phase of our transformation program will further strengthen our operating model and simplify our fixed cost structure. We fully anticipate these changes will strongly position Coty to outperform the beauty market in the coming years, cementing our global leadership position in fragrances while expanding into certain growing and profitable beauty categories, all while steadily expanding our gross margins and EBITDA margins.”

The company also plans to enhance the impact of its innovation pipeline by identifying launch priorities earlier and focusing resources on fewer, more significant initiatives. Additionally, Coty will structurally reduce non-people fixed costs across all areas of spending.

The initiative is projected to generate approximately $130 million in annual fixed cost savings before taxes, including about $80 million in FY26 and $50 million in FY27. Coty expects one-time cash costs of around $80 million for the program, split evenly between FY26 and FY27. 

Coty will also maintain its existing productivity program, targeting $120 million in savings in FY25, primarily through improvements in supply chain and procurement.

Together, the new fixed cost reduction measures and ongoing productivity initiatives are expected to yield nearly $500 million in savings from FY25 through FY27.