XS Cargo

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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]

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References

  1. Kopun, Francine (2014-08-07). "XS Cargo files for protection from creditors". Toronto Star. Retrieved 2021-08-25.
  2. Pilieci, Vito (2014-09-29). "XS Cargo doors will soon be closed". Ottawa Citizen. Retrieved 2021-08-25.
  3. XS Cargo (2012-01-11). "Duncan Reith Named President and CEO of XS Cargo". Cision. Retrieved 2021-08-25.
  4. 1 2 "Discount retailer XS Cargo to close out its 50 stores". CBC News. Retrieved 2018-03-08.
  5. Strauss, Marina (2014-09-28). "XS Cargo fails to restructure, starts liquidating stores". The Globe and Mail. Retrieved 2021-08-25.
  6. 1 2 Home Goods Online (2012-01-17). "Reith named president of XS Cargo". Home Goods Online. Retrieved 2021-08-25.
  7. 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.