Jacobson Stores Inc. (Jackson, Mich.), the specialty retailer that has been in bankruptcy protection since January, has announced that if it can't find a buyer to continue running the operation as a going concern it will liquidate.
The retailer plans to file such a motion in the next several days with the United States Bankruptcy Court in Detroit. If the court approves, Jacobson's will begin soliciting bids.
“We carefully explored and considered every option available to the company,” said president and ceo Carol Williams. “We of course would prefer to sell Jacobson's to a buyer whose financial resources would enable our company to emerge from bankruptcy. If this alternative is not feasible, [we] will be compelled to liquidate its assets.
“Given the current unsettled state of the specialty retail sector,” she added, “[moving forward with our identity intact] might prove to be an unworkable option.”
When the retailer filed for bankruptcy protection in January, it promptly closed five of its 23 stores but confidently asserted that $130 million in financing available to it would permit a successful reorganization while it continued to operate. But the shaky retail climate — especially for upscale merchandise — undermined those hopes. During that time, it received not a single proposal to purchase the business as a going concern.