NEW YORK — After 134 years, the plug has been pulled on Jacobson Stores Inc.
A Detroit bankruptcy court judge gave Jacobson’s its walking papers on Thursday, after the company was unable to find a buyer. Going-out-of-business sales are to start today at its remaining 18 stores in five states.
As reported earlier this month, the upscale retail chain gave more than half its employees their notice as it moved closer to a liquidation. The 18 specialty stores continued to operate as the company pursued a dual path in its bankruptcy, a course that allowed it to prepare to liquidate even as it solicited bids to sell the company. The problem too was that proceeds from any sale resulting from successful bids were already determined to be inadequate to sufficiently repay unsecured creditors in full.
On Thursday, the judge gave the Jackson, Mich.-based chain approval to sell its merchandise, credit cards and equipment to a group of five liquidators.
Jacobson’s gift cards can be used for a period of 14 days, after which the cards will be redeemed for cash.
Jacobson’s filed a voluntary petition for Chapter 11 bankruptcy court protection on Jan. 15. The chain was started by Abram Jacobson in 1868 as a women’s apparel store in Reed City, Mich.