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All Ricki’s and Cleo stores in Canada will close following liquidation sales in the coming weeks.

What shoppers need to know about gift cards, returns

Both and stores say on their websites that, as of Jan. 17, they will no longer accept returns or gift cards, and customers will not be able to receive or redeem loyalty points.

Comark operates 75 Ricki’s stores, 54 Cleo stores, 20 joint locations and about 19 outlets that are shared with Bootlegger, which has 53 standalone locations.

A filing under the Companies’ Creditors Arrangement Act will see Comark close all its Ricki’s and Cleo locations. The stores primarily sell women’s apparel. Court filings show Comark has 2,056 employees in Canada.

In a separate announcement, men’s and women’s clothier Frank and Oak Canada is also seeking creditor protection as it examines options to restructure its business.

Holiday boost

Marvin Ryder, assistant professor of marketing at McMaster University, said retailers expect increased sales and foot traffic during the holiday shopping season from mid-November to early January. Stores can generate up to half of their annual revenue during those times. But when stores underperform during the holidays, it’s not uncommon to see creditor protection filings and closures in mid-January.

In the case of Comark Holdings Inc., the company is closing its Ricki’s and Cleo stores while attempting to salvage the Bootlegger brand.

About four years ago, Ryder noted Comark operated about 300 retail locations in Canada, but hit a bump in the road due to the COVID-19 pandemic. At that time, the company sought creditor protection and closed about 80 stores.

“Now the hope is to save Bootlegger, but that would mean closing 125 to 140 (Ricki’s and Cleo) stores across Canada,” Ryder noted.

If you like Ricki’s and Cleo’s selection of clothing, workwear and casual apparel, Ryder said consumers could benefit in the short term once liquidation sales commence.

“At this point, they’re still open for business, so if you have a return, or you have a gift card you want to use, you’d better use it quickly,” Ryder noted.

What’s happening at Frank and Oak?

UCG Canada Holdings, owner of , is a much smaller player in the Canadian retail market. The Quebec-based banner operates 15 stores in Ontario, Quebec, British Columbia and Nova Scotia. Toronto locations include the Eaton Centre, Queen Street West and the Well on Front Street. Other Ontario locations are at Mississauga’s Square One Shopping Centre and Ottawa’s Rideau Centre. The store carries seasonal men’s and women’s clothing and essentials.

Known for eco-friendly fashion, Frank and Oak also sought creditor protection in 2020 due to pandemic-related challenges and closed a dedicated women’s store in Toronto.

Ryder said Frank and Oak also endured a difficult holiday season in 2024.

A company news release indicates Frank and Oak is attempting to restructure its business.

“The primary goal is to preserve the business, safeguard jobs and explore potential solutions, including attracting an investor or identifying a buyer for the brand,” the release states.

The stores remain open, at least for now.

What does this mean for the retail sector?

Ryder said most Canadian retailers enjoyed a solid 2024 holiday shopping season, boosted by Black Friday and Boxing Week sales and an ongoing GST holiday that continues until Feb. 15.

“I don’t necessarily see this as a bellwether of retail problems out there,” Ryder noted.

Other retailers, like H&M, Zara, Old Navy and American Eagle Outfitters, appeared to have a fine holiday season, for example.

“I don’t think it’s an indication that we’re not buying clothes. I think that it’s just we’re not buying these clothes,” said Ryder.