Popular women's clothing store Cotton Ginny is being forced to close its doors - within the next six weeks - after 14 years of successful business. Its closure will result in five employees losing their jobs.

Through a press release, BAJ Bermuda Ltd.(BAJ), who operates the Washington Mall business, announced yesterday that the imminent closure is a result of its parent company, Canadian-based Cotton Ginny Ltd., filing for bankruptcy. The company's debt amounts to approximately Canadian $47.5.

The Canadian company had been in financial difficulty for several years. In 1999, its president and CEO Gordon Fauteux was given 90 days to formulate a three-year plan to revitalise the struggling business when he took over the helm.

In 2001, Mr. Fauteux and Cotton Ginny's chief financial officer, Larry Gatien, successfully completed a management-led buy-out of the company. There are currently 285 Cotton Ginny branches in Canada along with the Bermuda store.

Poor holiday sales, increasing competition, and an unsuccessful makeover were among the reasons cited for the Canadian company's financial problems.

Since 1999, BAJ has made repeated efforts to renew its franchise licence with its parent company, but was unsuccessful. In recent weeks, Cotton Ginny Ltd. stopped sending merchandise to its Bermuda store.

However, The Royal Gazette understands the local store was up for sale and a buyer was set to purchase it in the near future.

"...with the present financial instability and therefore uncertain future of Cotton Ginny Ltd. in Canada, BAJ has no choice but to close the Washington Mall store," BAJ president and Cotton Ginny general manager Gillian Motyer said in the release.

Cotton Ginny first opened its doors locally in 1989 and was located in Bermuda House Lane before moving to its current Reid Street location. A second store, Cotton Ginny Plus also operated in Washington Mall until its doors closed in 1999.

In contrast to its parent company, the local Cotton Ginny, which had a customer base of 4,000, has remained profitable since its opening. And, according to the BAJ release, has seen record-breaking sales in recent years.

"Friendly staff and knowledgeable customer service has been the key to our success.

"In the Bermuda retail clothing business there is an opportunity to really get to know your customers, and what I will miss the most are our Cotton Ginny customers," Ms Motyer said in the release.

When contacted by The Royal Gazette, Ms Motyer declined to comment further, saying that she was going through "a very hard time."