Jacob shuts 92 stores to become a smaller boutique chain

Canadian womenswear retailer Boutique Jacob Inc. had decided to abandon its

restructuring efforts and close all its 92 stores in Canada as all its efforts over the last few months to "try to breathe new life into the company" have failed.

The insolvent retailer has been liquidating inventory at its Canadian stores since filing a proposal to creditors under the Bankruptcy and Insolvency Act in May. In early October, the Canadian retailer received a fourth court extension.

As announced earlier this week, the fashion retailer will proceed with selling all of the remaining merchandise at its stores and online at Jacob.ca.

It's noteworthy that the company has been under creditor protection since November 2010 when it underwent operational restructuring, which included closing some 50 stores. Jacob was founded in 1977.

"Unfortunately, the increasingly difficult economic context and the significant decrease in mall traffic weakened the company's fragile financial situation and forced it to close its doors," spokeswoman Cristelle Basmaji said in a statement Tuesday.