Things at JACOB appear to have gone from bad to worse. Just a few weeks ago, I wrote about how the women’s clothing chain folded its casual Connexion line into its main JACOB banner, which suggested sales may be sluggish.
The company confirmed this week that it is indeed going through tough times. It has applied to the Quebec Superior Court for protection under the Companies’ Creditors Arrangement Act.
This means the retailer is facing substantial financial hardships, and will restructure its financial affairs in an effort to avoid bankruptcy. Hopefully this period of restructuring will help JACOB get back on its feet so that it can get back to what it does best: selling fabulous clothes. After 30 years in the business, it would be devastating to see this Montreal-based family-run company disappear from the Canadian retail scene.
In the meantime, at least, business at JACOB will carry on as usual. JACOB’s president, Joey Basmaji, said in a press release that all of the chain’s stores will remain open during the restructuring process.
If you happen to visit a JACOB store in the next few weeks, bring in an article of clothing that you no longer wear. The company will donate it to a woman in need, and you’ll get 25% off your purchase.