SEATTLE — Jay Jacobs Inc., a 257-unit juniors and young men’s specialty chain suffering from weak sales, has filed for Chapter 11 bankruptcy protection.
In court papers, the chain, based here, listed liabilities totaling $9.48 million, all unsecured, and assets of $32.18 million. In the wake of the filing, Craig Bohman, president and chief executive officer, resigned. He will remain with the company on an interim basis, according to a company statement. Chairman and founder J. Jay Jacobs has assumed Bohman’s responsibilities until a new ceo is named.
Two other directors, Irving Stanlislaw, a former senior executive at The Bon Marche, and Seattle businessman Robert O’Brien, also resigned.
The profitability of the retailer “has been severely burdened by a group of unprofitable stores that must be closed or otherwise addressed,” Jacobs said in a statement. Juniors accounts for 70 percent of sales; young men’s, 30 percent.
In the year ended Feb. 26, the company lost $12.7 million, including a $7.5 million third-quarter restructuring charge. The year before, the company reported a profit of $512,000, or 9 cents a share.
Sales were $140 million, down 12 percent from $159 million.
According to retail observers, Jay Jacobs was hurt by soft apparel sales particularly in California, poor cost controls and has been slow in remodeling stores.
Jacobs and his daughter, Shelley J. Swerland, control 66 percent of the stock.