I believe that every business has its bad and good days, one just has to know how to deal with problems and make it their strength. With the increasing amount of business nowadays, every business cant be successful. Every business has its ups and down.
As the Xs Cargo Co. of Mississauga, Ont. has pounded in the face of competition from big-box discount rivals.They began their final liquidation sale over the weekend(28th september) and closed its 50 stores in 8 provinces across Canada.
Big Lots and Xs Cargo were on the same line which carried a similar line up of goods such as housewares, home decor, home electronics and furniture. Xs Cargo filed a notice to restructure under Canada’s Co. Creditors Arrangement Act (CCCA) on July 30, reporting its assets of approx $15.8 million and liabilities of $18.7 million. It also owed $7.4 million to its unsecured creditors. Xs Cargo pushed itself to the breaking point because they lowered their price to compete with Walmart Canada which was not fruitful to them. (Hollie Shaw, Page 1)
Through the past six months , they experienced a slump in their sales due to the appearance of a well known American discount retailer who entered the Canadian market.Xs Cargo struck an agreement with Boston- based Tiger Capital Group on Sep. 15 to settle the stores and the deal was approved on Sep. 19.
Not just Xs cargo but many other warehouse are shutting because of the increased amount of business and competition in the market. For instance Toronto based Bowring and Bombay Co. furniture and Montreal based Boutique Jacob.
Companies should accept challenges and opportunities in the world of business because its necessary for the growth and development of business in a health spirit.
Article Link.. http://business.financialpost.com/2014/09/28/mississauga-warehouse-retailer-xs-cargo-to-close-its-50-stores-across-canada-after-failed-bid-to-restructure/
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