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Jacob closing all its stores

The Truth

TRIBE Member
Veteran Canadian fashion retailer Boutique Jacob Inc. is closing its doors after years of pressure from larger global fast fashion players.

The Montreal-based company, which has 92 stores across Canada, will liquidate its inventory in the coming weeks after filing a notice of intention Tuesday to make a proposal to its creditors under the Bankruptcy and Insolvency Act.

Jacob’s expiry comes after years of steady penetration into Canada from international cheap chic fashion giants such as Zara, H&M, Forever 21 and Aeropostale, all of whom sell apparel at low price points.

Jacob filed for creditor protection under the companies creditors’ arrangement act in late 2010 and restructured its operations. In a statement, the chain said it remained under pressure thereafter from a tough economy and “international competitors who quickly stole market share” from Canadian retailers.

“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,” said Joey Basmaji, the retailer’s founder and president.

“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.”

Montreal-based fashion retailers Reitmans and Le Chateau have also struggled with weaker operating performance in recent years. In the fiscal year ending Jan. 25, the 228-store Le Chateau chain lost $16-million, or 59¢ per share, compared with a net loss of $8.7-million (34¢) in the prior year, and annual sales were flat at $275-million. Reitmans, which operates stores under its own name and banners such as Thyme Maternity, RW & Co., Smart Set, and Penningtons, closed 58 stores and opened 25 in the latest fiscal year as its net income plunged 59% to $10.79-million. Annual sales at stores open for more than a year fell 2.8%.

“There are a lot of new entries in the market and of course they are coming in at lower prices,” said Wendy Evans, a Toronto-based retail consultant. “Jacob has always sold its goods at a mid-price point. It’s very difficult for a smaller Canadian company to get the economies of scale that large global retailers do, compete with the marketing, and in the online business as well. Joe Fresh is a really strong competitor here among other very strong international players. If you haven’t got the money to invest online and in stores, it’s a tough place to be.”

Canadian fashion chain Boutique Jacob closing its doors across Canada | Financial Post
 

alexd

Administrator
Staff member
In the future of retail, there will only be banks, shoppers drug marts, and starbucks.
 

skin deep

TRIBE Member
I actually like RW & Co., is that allowed? One of my favourite shirts is from there, wore it on a night I got blackout drunk and broke open my face, woke up to it covered in blood. Stains came out pretty well, still wear it.
 

Dirty Girl

TRIBE Member
that sucks. I like jacob. its good for work clothes and cardigans. and i like cardigans. and there stuff is actually a decent quality. :(
 
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octo

TRIBE Member
that's too bad. i didn't even know they were canadian.

back in the day all the hot girls wore stuff from jacob.

i remember grade 8 graduation 2 girls showed up wearing the same dress from jacob. it was the hottest thing ever watching them be angry and catty with each other.

in highschool, when a girl dragged you to the mall, waiting outside of jacob didn't even matter cause it was a parade of hotties coming out of there.

of course my memory could be affected by raging hormones.

i bought a girl a cardigan from jacob last year. clothes for cute classy girls.
 
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