Montreal women’s clothing retailer Boutique Jacob Inc., which operates 92 Jacob stores across Canada, is filing for bankruptcy and plans to liquidate its inventory.
The 35-year-old company placed itself under creditor protection in 2010 and underwent a restructuring, but says it was unable to return to profitability or find new sources of financing.
The factors that led to the company's insolvency were a slugglish post-recession economy as well as more international competitors, the company said in a release.
There are a total of eight Jacob stores in the Metro Vancouver region.
"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," said Jacob founder and president Joey Basmaji.
"I hope that the remaining Canadian retailers will get through these difficult economic times."
Large American retail chains like Target and Nordstroms have recently moved to open stores in Canada. The past two decades have also seen the entry of "fast fashion" outlets in Canada, such as Spain's Zara, Swedish retailer H&M and Joe Fresh, which is owned by Loblaws.
Well-established Canadian retailers Sears Canada and Best Buy have also struggled in recent months. Both companies have laid off hundreds of workers as they attempt to restructure their businesses.
Intense competition in the retail sector will have an impact on prices, economists say. While inflation is expected to continue to rise modestly on other products, retail prices will remain low.
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