XS Cargo was a Canadian

discount store Discount stores offer a retail format in which products are sold at prices that are in principle lower than an actual or supposed "full retail price". Discounters rely on bulk purchasing and efficient distribution to keep down costs. Types (Uni ...

chain founded in 1996 by Mike McKenna and headquartered in

Mississauga Mississauga is a Canadian city in the province of Ontario. Situated on the north-western shore of Lake Ontario in the Regional Municipality of Peel, it borders Toronto (Etobicoke) to the east, Brampton to the north, Milton to the northwest, ...

Ontario Ontario is the southernmost Provinces and territories of Canada, province of Canada. Located in Central Canada, Ontario is the Population of Canada by province and territory, country's most populous province. As of the 2021 Canadian census, it ...

. At its peak, it operated 50

warehouse A warehouse is a building for storing goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial parks on the rural–urban fringe, out ...

-style stores, the first of which opened in

Edmonton Edmonton is the capital city of the Provinces and territories of Canada, Canadian province of Alberta. It is situated on the North Saskatchewan River and is the centre of the Edmonton Metropolitan Region, which is surrounded by Central Alberta ...

Alberta Alberta is a Provinces and territories of Canada, province in Canada. It is a part of Western Canada and is one of the three Canadian Prairies, prairie provinces. Alberta is bordered by British Columbia to its west, Saskatchewan to its east, t ...

, mostly in

strip mall A strip mall, strip center, strip plaza or simply plaza is a type of shopping mall, shopping center common in North America and Australia where the stores are arranged in a row, with a footpath in front. Strip malls are typically developed as a ...

s, across eight provinces selling a wide range of

brand name A brand is a name, term, design, symbol or any other feature that distinguishes one seller's goods or service from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create and ...

clearance,

liquidated Liquidation is the process in accounting by which a company is brought to an end. The assets and property of the business are redistributed. When a firm has been liquidated, it is sometimes referred to as wound-up or dissolved, although di ...

, overstocked and unsold merchandise purchased from distressed retailers. It also administered two distribution hubs in Edmonton and Mississauga. In June 2011, XS Cargo was sold for around $5.3 million to

Greenwich, Connecticut Greenwich ( ) is a New England town, town in southwestern Fairfield County, Connecticut, United States. As of the 2020 United States census, 2020 census, it had a population of 63,518. It is the largest town on Gold Coast (Connecticut), Connectic ...

-based private investment firm KarpReilly LLC. Duncan Reith, former senior vice president of merchandising for

Canadian Tire Corporation Canadian Tire Corporation, Limited () is a Canadian retail company which operates in the automotive, hardware, sports, leisure and housewares sectors. Its Canadian operations include: Canadian Tire (including Canadian Tire Petroleum gas station ...

, was named the company's new president and CEO, succeeding the retiring McKenna, in January 2012. On July 30, 2014, XS Cargo filed for

bankruptcy Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the deb ...

protection, reporting about $15.8 million in assets and $18.7 million in debt, including $7.4 million owed to

unsecured creditor An unsecured creditor is a creditor other than a preferential creditor that does not have the benefit of any security interests in the assets of the debtor. In the event of the bankruptcy of the debtor, the unsecured creditors usually obtain a '' ...

s. In September, having been unable to successfully restructure, the chain began to liquidate its inventory; by October 26, all its

brick-and-mortar Brick and mortar (or B&M) is an organization or business with a physical presence in a building or other structure. The term ''brick-and-mortar business'' is often used to refer to a company that possesses or leases retail shops, factory produc ...

outlets closed and the company officially went out of business. XS Cargo's liquidator cited the entry of

Target Target may refer to: Warfare and shooting * Shooting target, used in marksmanship training and various shooting sports ** Bullseye (target), the goal one for which one aims in many of these sports ** Aiming point, in field artille ...

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.

References

Furniture retailers of Canada Retail companies disestablished in 2014 Defunct retail companies of Canada Canadian companies disestablished in 2014 {{Canada-company-stub

See also

References