Jacob : Survival Of the Fittest
Last May, Jacob announced that it was closing all its stores, but the ensuing flood of supportive messages from customers encouraged it to go for one last try by hiring former MNA Élaine Zakaïb. On October 21, Jacob officially declared bankruptcy with close to $90 million in debts
The Failure :
Jacob had been having financial problems for years with its 92 stores and over 1,000 employees. The company filed for creditor protection for the first time in 2010 and again in 2011. According to management, it was hard economic times and new international competition that led to its insolvency.
To turn Jacob around, Ms Zakaïb intended to feature clothing lines that were ‘Made in Québec’ (entirely created, designed and manufactured in Québec), but she never had time to put her plan into action. Jacob, after over 40 years in business, was simply unable to survive.
The Moral :
Fashion is a fast-paced business. With the proliferation of online shopping, brands like H&M and Zara can get their clothes on the market and to their customers in just three weeks. Today’s companies have to constantly reinvent themselves to keep abreast. Jacob no longer had that capacity and its positioning had become fuzzy in an increasingly competitive market.
Image Source : CTV News