Going-out-of-business sales are now under way in all 50 stores operated by XS Cargo Company, the Canadian deep-discount store chain that had filed for protection against creditors on July 30, 2014.
“Unfortunately, efforts to restructure the business did not result in an economically sustainable model, so the company determined that liquidation was the only option at this juncture,” said Bradley Snyder, Executive Managing Director of Tiger Capital Group, which was appointed by the company to run the going-out-of-business sale. “This creates a tremendous opportunity for consumers to get unprecedented discounts on XS Cargo’s already-low prices on a wide variety of merchandise.” Effective immediately, all items will be discounted, with selected items offered at up to 40% off the lowest ticketed price.
Founded in 1996, the Mississauga-based chain currently operates stores in eight provinces, including Alberta, British Columbia, Manitoba, Ontario, Manitoba, New Brunswick, Nova Scotia, and Saskatchewan. The chain made its mark by purchasing name-brand goods from distressed situations across a range of merchandise categories, including furniture, housewares, consumer electronics, appliances, bed and bath, fashion, health and beauty aids, luggage, sporting goods, seasonal items, and much more.
The stores, which are located primarily in strip centers, range in size from 6,600 to 20,400 square feet. In addition to the stores, XS Cargo operates distribution centers in Mississauga and Edmonton.
“Fresh merchandise from the distribution centers will be arriving daily into the stores,” added Snyder. “We urge the public to get into the stores early to take advantage of the widest selection of merchandise. At these significant discounts, we believe that all merchandise will be sold very quickly.”
At the time of its filing for creditor protection, XS Cargo employed 650 people, including 195 full-time workers. In its filing, the company stated that its financial condition deteriorated in the wake of increased competition in the discount retail sector. “During the past six months or so, the Group experienced a downturn in sales due to the emergence of a large well-known American discount retailer who entered the Canadian market along with increased competition from well-established traditional retailers who have significantly increased their tactical promotional activities,” the company said in August. “Both of these factors contributed to difficulties in the Group executing its turnaround strategy.”
In addition to the merchandise inventories, Tiger Capital Group will be selling fixtures and equipment from all 50 stores, as well as equipment from the two distribution centers.
Tiger Capital Group provides asset valuation, advisory and disposition services to a broad range of retail, wholesale, and industrial clients. With over 40 years of experience and significant financial backing, Tiger offers a uniquely nimble combination of expertise, innovation and financial resources to drive results. Tiger’s seasoned professionals help clients identify the underlying value of assets, monitor asset risk factors and, when needed, provide capital or convert assets to capital quickly and decisively. Tiger’s collaborative, straight-forward approach is the foundation for its many long-term ‘partner’ relationships and decades of success. Tiger operates main offices in New York, Boston, Los Angeles and Sydney, Australia.