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Retail expert not surprised Jacob is closing its stores
The women's clothing retailer has filed for bankruptcy
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Jacob Inc has announced that it is closing all of its stores after filing for bankruptcy.

The women's clothing retailer currently has 92 locations across Canada and about 1,000 employees.

The company, based in Montreal, says it will liquidate its inventory in the coming weeks.

Jacob has been under creditor protection since 2010 and underwent an operational restructuring.

The company's president says they were unable to find a way to return to profitability or find new sources of financing.

"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," president and founder Joey Basmaji says in a statement.

Retail expert David Gray, with DIG360, says he's not surprised by the news.

"If they were very successful, then they wouldn't be closing their doors," he says.

Ten years ago, he says Jacob was at the top of the game.

But starting around the time of the recession a few years ago, Gray says the industry started to change. Consumer demand evolved, off-shore sourcing brought down prices, and a list of U.S. retailers started to move in.

Gray says some Canadian retailers didn't see what was coming at them.

"God love them, but they were focused on their businesses day to day and they didn't pop their heads up."

At the same time, he points to big Canadian success stories like Aldo, Joe Fresh and Lululemon.

"They were based in Canada but they believed they were going to compete at a world-class level," Gray says. "It really changes your mindset. It changes where you invest. It you changes your critical thinking about your business."

There is some good news for consumers in the changing industry, he says.

"There's more and more choice. With one chain closing, there's probably three that are going to arrive on the scene in the next year."

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9 0

Jacob Inc has announced that it is closing all of its stores after filing for bankruptcy.

The women's clothing retailer currently has 92 locations across Canada and about 1,000 employees.

The company, based in Montreal, says it will liquidate its inventory in the coming weeks.

Jacob has been under creditor protection since 2010 and underwent an operational restructuring.

The company's president says they were unable to find a way to return to profitability or find new sources of financing.

"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," president and founder Joey Basmaji says in a statement.

Retail expert David Gray, with DIG360, says he's not surprised by the news.

"If they were very successful, then they wouldn't be closing their doors," he says.

Ten years ago, he says Jacob was at the top of the game.

But starting around the time of the recession a few years ago, Gray says the industry started to change. Consumer demand evolved, off-shore sourcing brought down prices, and a list of U.S. retailers started to move in.

Gray says some Canadian retailers didn't see what was coming at them.

"God love them, but they were focused on their businesses day to day and they didn't pop their heads up."

At the same time, he points to big Canadian success stories like Aldo, Joe Fresh and Lululemon.

"They were based in Canada but they believed they were going to compete at a world-class level," Gray says. "It really changes your mindset. It changes where you invest. It you changes your critical thinking about your business."

There is some good news for consumers in the changing industry, he says.

"There's more and more choice. With one chain closing, there's probably three that are going to arrive on the scene in the next year."

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