Clothing chain liquidates stores, seeks buyer without bankruptcy | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

In a day and age when many people prefer the quick and easy over slow and carefully researched, it’s hard to keep a clothing business thriving.

While some evidence is surfacing that shoppers who buy at higher price points are stepping into malls again, many looking for more cost-effective options still rely on Amazon, Shein, Temu, and others.

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Some of those customers may be changing their shopping behaviors soon, thanks to President Donald Trump’s tariffs, which did get a 90-day pause earlier this week, but not for China.

All the retailers mentioned above are either based out of China or rely heavily on it for their apparel stock, especially via third-party sellers, in Amazon’s case.

While Amazon CEO Andy Jassy recently said during an April 9 interview with CNBC that Amazon is working hard to keep prices low for its customers, he also warned that if tariffs proceed as planned, a lot of third-party sellers may be forced to raise prices to survive. Third parties currently account for 60% of Amazon’s sales, according to stats from its company blog for sellers.

As the world faces an uncertain economy, another apparel company has announced that it’s having major struggles.

Canadian clothing retailer Frank & Oak is closing stores.

Image source&colon; Frank & Oak

Sustainable fashion company announces store closures

Canadian-based apparel brand Frank & Oak has announced it will shutter a total of nine stores in Canada, citing stresses from Covid-19 as one of the reasons.

Frank & Oak saw the writing on the wall back in December, when it filed a notice of intention. These are intended to facilitate restructure for faltering companies and help them avoid outright bankruptcy.

The Montreal-based company has 150 employees, but the company has not yet said how many jobs will be affected. Spokesperson Elisabeth de Gramont said that Frank & Oak does plan to continue to run its e-commerce business.

Frank & Oak has been on the search for a new buyer since January 2025. “Robust interest” was shown in the early phases of the process according to court filings, but the company has not announced that it has found a buyer.

The sustainable fashion company was founded in 2012 and is known for its use of eco-friendly materials and ethically driven partnerships with like-minded factories.

The fashion industry faces new problems

Several big-name apparel retailers that have been in the space for many years are also closing stores in 2025, including Kohl’s, Forever21, Torrid, JCPenney, and Macy’s. Forever21 also declared bankruptcy for the second time.

Some research points out where shoppers may now be buying clothes instead: Walmart and Amazon, according to the National Retail Federation. People also flock to Shein, which is the fourth-biggest player in the fashion market as of 2024.

In the meantime, the forecast for the fashion industry overall seems positive, projected to reach USD 1.80 trillion by 2025, according to a Straits Research report. It was valued at 1.67 trillion in 2024.