Boutique Jacob Inc. files a Notice of intention to make a proposal to its creditors under the Bankruptcy and Insolvency Act
MONTREAL, May 6, 2014 /CNW Telbec/ - Canadian women's fashion retailer Boutique Jacob Inc. filed yesterday a Notice of intention today to make a proposal to its creditors under the Bankruptcy and Insolvency Act. During the coming weeks, the company will liquidate its inventory in an orderly fashion through its 92 JACOB, JACOB Outlet and JACOB Liquidation stores across Canada.
In November 2010, Boutique Jacob Inc. placed itself under CCAA protection and underwent an operational restructuring. While the company made significant progress since then, it was unable to return to profitability and was not able to find new sources of financing.
The difficult economic context of the past few years coupled with the arrival of numerous international competitors who quickly stole market share from Canadian retailers are the factors that led to the company's insolvency.
"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. 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," explains Joey Basmaji, President and Founder of Boutique Jacob Inc.
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