Canadian women’s fashion retailer Jacob is closing its stores across Canada and liquidating its inventory. On Wednesday (May 6) the Montreal retailer announced it had filed for a notice of intention under the Bankruptcy and Insolvency Act.
In November 2010, Boutique Jacob Inc. placed itself under Companies’ Creditors Arrangement Act (CCAA) protection and, according to the Wednesday press release, “underwent an operational restructuring. While the company made significant progress since then, it was unable to return to profitability and was not able to find new sources of financing.”
The company has existed for 35 years and employs about 1,000 people.
Joey Basmaji, president and founder of Boutique Jacob Inc., said he was “proud of the passion and dedication that the Jacob team showcased … while trying to bring the company back to financial health.”
“I hope that the remaining Canadian retailers will get through these difficult economic times,” said Basmaji.
Jacques Nantel, a marketing professor at HEC Montréal, called the announcement “sad news” for the retail industry.
Nantel said several factors are leading to bleak times for Canadian retailers, such as a growing e-commerce industry, new players entering the market and higher expenses for Canadian families.
According to the company’s website Jacob was started in a small town in the province of Quebec in the 1960s, Jacob Basmaji
His son Joey Basmaji took over in 1977 and the head office of the family business is now in Montreal.
CBC News - Jacob women’s boutique to close stores across Canada – here
Boutique Jacob Inc. files a Notice of intention to make a proposal to its creditors under the Bankruptcy and Insolvency Act (press release) – here
Jacob’s history on its website – here