Canadian Apparel Brand Oak + Fort Seeks Creditor Protection Amid Tariff Pressures.

Oak + Fort, a Vancouver-based apparel company, has obtained creditor protection to restructure its business due to declining consumer confidence and spending caused by US tariffs. The company owes over $25 million to creditors and plans to continue operating stores and its e-commerce business during the restructuring process. Retail strategist David Ian Gray says the tariffs have added to a "perfect storm" for retailers like Oak + Fort, and others may face similar challenges in the months to come.

Vancouver-based apparel company Oak + Fort has obtained creditor protection to restructure its business, citing declining consumer confidence and spending due to U.S. tariffs. The company owes over $25 million to creditors, including landlords who did not receive May rent payments. Oak + Fort plans to continue operating its 42 stores and e-commerce platform during the restructuring process [1].

The company's financial difficulties stem from aggressive expansion and the impact of U.S. tariffs on Chinese imports, which make up approximately 68% of its apparel. The tariffs have increased supply chain and import costs, putting further pressure on margins for the company's U.S. stores [2]. Retail strategist David Ian Gray suggests that these tariffs have contributed to a "perfect storm" for retailers like Oak + Fort, and others may face similar challenges in the coming months [3].

Oak + Fort was founded in 2010 as an online boutique and has since expanded to 42 stores across Canada and the United States. However, the company's expansion strategy has left it under-invested in its e-commerce platforms while fixed costs from physical retail have mounted. The company recorded a net loss of $1.1 million in 2023 and $10.6 million in 2024, despite generating $93.8 million in revenue in its most recent fiscal year [2].

The situation became urgent in late May when Oak + Fort missed rent payments, prompting some landlords to threaten lockouts and inventory seizures. The company has since sought creditor protection to avoid losing access to inventory and key store locations. Oak + Fort employs 601 staff, with 434 located in Canada [2].

Oak + Fort has retained Reflect Advisors LLC to oversee the restructuring, with KSV Restructuring Inc. appointed as the court monitor under the Companies’ Creditors Arrangement Act (CCAA) proceedings. The company believes that a scaled-down store network, combined with a renewed focus on e-commerce and stronger financial backing, can allow the brand to stabilize and eventually return to growth [2].

The coming months will be critical for Oak + Fort as it negotiates with creditors, seeks new financing, and adjusts its operations to match current market realities. The company's restructuring process will serve as a closely watched test case for other mid-sized Canadian retailers facing similar pressures amid a turbulent retail landscape.

References:
[1] https://financialpost.com/news/retail-marketing/apparel-oak-fort-restructure-tariff-woes
[2] https://retail-insider.com/retail-insider/2025/06/oak-fort-files-for-creditor-protection-amid-debt-crisis/
[3] https://www.nsnews.com/retail-manufacturing/apparel-brand-oak-fort-to-restructure-amid-tariff-woes-10780684