Sadly, Canadian retailer JACOB has announced they plan to close all 92 of its stores in the coming weeks.
The Montreal-based retailer has been under credit protection since 2010 and underwent restructuring. With the company unable to obtain new financiers the business remained unprofitable.
In a statement issued on Tuesday, the company cited the challenging economy plus the influx of new international retailers to the Canadian marketplace among the factors leading to the company become unable to overcome its financial obligations.
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.
This is bad news for the retail industry, especially for Canadians.
JACOB’s announcement to close all of its stores comes just a few months after retail giant SEARS closed several of its prominent locations around Canada. Other retailers such as TARGET have had a tough time in the Canadian market, reporting first year loses at $1 Billion dollars (CAD), but recently said they are committed to Canadians and plan to open 9 more stores soon. There are always rumours of store closings out there. Speculation has it that French Connection will be shutting down their location in the busy Eaton Centre.
This gloomy news doesn’t seem to be driving away any international business. Well-known retailers are venturing into Canada over the next few years including Saks Fifth Avenue, Neiman Marcus, Lord & Taylor, bridal boutique Kleinfelds and many more. Yorkdale Mall just announced they will be opening a new Forever 21, Jimmy Choo and Canada’s first Versace store.
All of this means stiff competition for retailers already rooted in Canada. We can think of a few Canadian based retailers that we would not be surprised to hear are closing down business. Sadly, we could do the same for a some international shops who have opened their doors in Canada. Stores here already here, must find ways to keep customers happy and loyal, and those who don’t have e-commerce up and running don’t have much time to spare.
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