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. It also administered two distribution hubs in Edmonton and Mississauga.[4]
In June 2011, XS Cargo was sold for around $5.3 million to Greenwich, Connecticut-based private investment firm KarpReilly LLC.[5] 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.[5]
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.[6] 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.[7]
See also
References
- Francine Kopun. XS Cargo files for protection from creditors Toronto Star, 2014-08-07, retrieved 2021-08-25^
- Vito Pilieci. XS Cargo doors will soon be closed Ottawa Citizen, 2014-09-29, retrieved 2021-08-25^
- XS Cargo. Duncan Reith Named President and CEO of XS Cargo