Women's wear retail store Jacob on Bloor Street in Toronto.Moe Doiron/The Globe and Mail
Women's clothing retailer Jacob Inc. has filed for bankruptcy and will be liquidating inventory at all 92 of its stores across Canada in the coming weeks.
The Montreal-based company has been under creditor protection since November, 2010 and underwent operational restructuring. But the company says it was unable to make the business profitable or to find new financiers.
In a release issued on Tuesday, the company cited the challenging economy plus the influx of new international retailers to the Canadian marketplace among the factors leading to the company's inability to overcome its financial challenges.
"Although we did not achieve the desired result, I am proud of the passion and dedication that the Jacob team showcased over these past few years while trying to bring the company back to financial health," president and founder Joey Basmaji said in a statement.
"I would like to sincerely thank each employee and business partner that contributed to our success during these 35 wonderful years. I hope that the remaining Canadian retailers will get through these difficult economic times."
The Montreal-based, privately-owned family company began as a single apparel store in Quebec in the 1960s, owned by Jacob Basmaji. The first Jacob store opened in 1977 and the company's Canadian-wide expansion began in 1985 with the opening of its first store in Toronto, Canada's largest city.
With a file from Reuters