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.

[5] In June 2011, XS Cargo was sold for around $5.3 million to Greenwich, Connecticut-based private investment firm KarpReilly LLC.

[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.