Jacob given another month by court to restructure
Women's fashion retailer Jacob Inc. has been given a month to come up with a restructuring plan to stave off its financial problems and keep some of its stores open.
In May, the Montreal-based retailer announced it would close stores across the country after running into financing issues. That news came after the chain filed for help under federal law to stop its creditors from selling off assets to pay debts after it went insolvent in the fall of 2010.
On Monday, the Quebec Superior Court extended creditor protection under the Companies’ Creditors Arrangement Act for another 30 days.
Company spokesperson Cristelle Basmaji says the company will use that time to finalize its plan and obtain financing.
But she declined to provide details about the number and location of the stores that could remain open.
With files from The Canadian Press