13-Year-Old Founder Steps Down From Jay Jacobs -- Longtime Chairman To Stay On Board
At age 85, after more than five decades in the retail business, Jay Jacobs has retired. Almost.
Jay Jacobs, the Seattle fashion retail chain that bears its founder's name, announced yesterday that Jacobs has relinquished his position as chairman of the board. Jacobs, who lives in Seattle, will remain a director.
The move comes as Jay Jacobs stores continue to struggle. The company filed for Chapter 11 bankruptcy protection in 1994 and emerged in 1995.
As part of that process, representatives of three of the company's creditors took board seats in April. One of them, Paul Buxbaum, president of Buxbaum, Ginsberg & Assoc., will succeed Jacobs.
Jacobs' retirement as chairman marks the most significant step back since he began the business in 1941 after buying a share of Coe Brothers, a downtown Seattle furrier.
During the 1960s and 1970s he established Jay Jacobs as a leading force in teen fashion. Over the decades, Jacobs garnered a reputation as a hands-on leader, paying attention to the clothing in the windows and the color of the carpet while running an operation of more than 250 stores.
In a 1995 interview, Jacobs explained why he kept a hand in the business long after most of his peers would have retired.
"Maybe its just because the old horse goes back to the barn and the old Jay Jacobs goes back to the office every day," he said. "I wouldn't be working . . . if it wasn't something I was interested in."
But in recent years, his detailed involvement drew criticism from some who said he didn't give managers enough autonomy.
Bill Lawrence, company chief financial officer, said yesterday that Jacobs simply felt he'd been directly involved long enough.
"I think he feels now's the right time (to retire) with the changes that are happening," Lawrence said.