XS Cargo
XS Cargo was a Canadian discount store chain founded in 1996 by Mike McKenna[1] and headquartered in Mississauga, Ontario.[2] At its peak, it operated 50 warehouse-style stores, the first of which opened in Edmonton, Alberta,[3] mostly in strip malls, across eight provinces selling a wide range of brand name clearance, liquidated, overstocked and unsold merchandise purchased from distressed retailers.[4] It also administered two distribution hubs in Edmonton and Mississauga.[5]
In June 2011, XS Cargo was sold for around $5.3 million to Greenwich, Connecticut-based private investment firm KarpReilly LLC.[6] Duncan Reith, former senior vice president of merchandising for Canadian Tire Corporation, was named the company's new president and CEO, succeeding the retiring McKenna, in January 2012.[6]
On July 30, 2014, XS Cargo filed for bankruptcy protection, reporting about $15.8 million in assets and $18.7 million in debt, including $7.4 million owed to unsecured creditors.[7] In September, having been unable to successfully restructure, the chain began to liquidate its inventory; by October 26, all its brick-and-mortar outlets closed and the company officially went out of business. XS Cargo's liquidator cited the entry of Target into the Canadian market, which intensified competition among "well-established traditional retailers", resulting in diminishing business, as the prime reason for the company's failure.[4]
See also
[edit]References
[edit]- ^ Kopun, Francine (2014-08-07). "XS Cargo files for protection from creditors". Toronto Star. Retrieved 2021-08-25.
- ^ Pilieci, Vito (2014-09-29). "XS Cargo doors will soon be closed". Ottawa Citizen. Retrieved 2021-08-25.
- ^ XS Cargo (2012-01-11). "Duncan Reith Named President and CEO of XS Cargo". Cision. Retrieved 2021-08-25.
- ^ a b "Discount retailer XS Cargo to close out its 50 stores". CBC News. Retrieved 2018-03-08.
- ^ Strauss, Marina (2014-09-28). "XS Cargo fails to restructure, starts liquidating stores". The Globe and Mail. Retrieved 2021-08-25.
- ^ a b Home Goods Online (2012-01-17). "Reith named president of XS Cargo". Home Goods Online. Retrieved 2021-08-25.
- ^ Shaw, Hollie (2014-09-28). "Mississauga warehouse retailer XS Cargo to close its 50 stores across Canada after failed bid to restructure". Financial Post. Retrieved 2021-08-26.
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