The signs have been there these past few months that bankrupt Canadian fashion retailer Jacob was on the cusp of closure, with never-ending sales and a lack of new stock. It was all heading to today’s announcement that the veteran retailer will be closing all 92 of its stores.
The Montreal-based company will liquidate its remaining inventory in the coming weeks after filing a notice of intention on Tuesday to make a proposal to its creditors under the Bankruptcy and Insolvency Act. According to a press release, the company cited the challenging economy and “international competitors who quickly stole market share” from Canadian retailers among the factors leading to the company's inability to overcome 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.
The likes of Zara, H&M, Forever 21 and Aeropostale crossing the border have led to a dip in sales for our Canadian-based retailers. Le Chateau and Reitmans have each suffered recent financial loses, while on the flip side, Joe Fresh continues to buck trends and successfully march to the beat of its own drum. Its model of pumping money into online strategy and advertising seems to be paying off.
Meanwhile, many commenters over at Huff Po are linking this latest news with the death of the mall altogether. Indeed, we millennials may be more interested in shopping online, but could it be that Jacob’s closure simply means there’s little place for mid-priced goods? Feel free to disagree, but did you ever find Jacob’s dated clothing was priced too high to be “fast fashion” and too low to be luxe?