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NCIX files for bankruptcy after closing all retail stores

By Greg S ยท 16 replies
Dec 2, 2017
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  1. Computer hardware sales are alive and well, but unfortunately Netlink Computer Inc. has reached an impasse. Commonly known as NCIX, the hardware and software retailer has officially filed for bankruptcy in Vancouver, Canada.

    Founded in 1996, NCIX primarily served western Canadian residents. After building a sizable online presence and looking to expand, the company opened brick and mortar stores in the Vancouver area and later added additional locations in Ontario. Once the Canadian market was well covered, NCIX set up a distribution center in the United States in 2011.

    Moving forward to July 2017, NCIX shut down several of its retail stores in eastern Canada and closed its office in Markham, Ontario. Then in November, five more stores were shut down. At this time, customers were told to file chargebacks with financial institutions for orders that were not fulfilled.

    Now, all NCIX retail stores have been closed and show no signs of returning. The Supreme Court of British Columbia will hear the bankruptcy case filed by NCIX. At this time it is advised that no orders are placed due to the possibility of not receiving a product and being unable to obtain a refund.

    Where exactly NCIX went wrong is still open to debate. Competition from Amazon, Newegg, and other online sites may have been too much. Regardless of the reasoning, costs clearly have outweighed revenue for some time now. For those interested in hearing more possible reasons of failure, listen to some insight from two well known former employees.

    Linus Sebastian and Luke Lafreniere take around 20 minutes to discuss some of their experiences working at NCIX before leaving to be a part of Linus Media Group.

    Permalink to story.

     
  2. bmw95

    bmw95 TS Maniac Posts: 195   +161

    I feel like Newegg could be coming next.
     
  3. xDDD123

    xDDD123 TS Rookie

    Newegg is backed by a multi-billion dollar Chinese corporation, they will not be next xD
     
  4. poohbear

    poohbear TS Addict Posts: 139   +79

    But the NCIX site is still online? and still selling stuff! I always found their specials to be decently priced, but their normal stuff was always pricier than the competition!
     
  5. yRaz

    yRaz Nigerian Prince Posts: 2,252   +1,315

    The invasive ads on your website make reading articles very difficult. Please change your advertising model or people will start leaving
     
  6. seeprime

    seeprime TS Booster Posts: 109   +99

    You can install uBlock Origin in Chrome, Edge, and Firefox. The less effective AdBlock Plus is available for all of them, and IE. It's up to you to monitor what you see. I often turn uBlock Origin off, so Techspot gets some revenue
     
    p51d007 and Greg S like this.
  7. hahahanoobs

    hahahanoobs TS Evangelist Posts: 2,018   +663

    For a site selling computer hardware, their website looked like ***.
    Canada Computers must be pushing them out, because they are better in every way in comparison.
    You won't be missed, NCIX.
     
  8. yRaz

    yRaz Nigerian Prince Posts: 2,252   +1,315

    I have techspot whitelisted because I believe in supporting companies that provide a service I use. But when I'm viewing from my phone and I have 3 full page ads popup it gets to be a bit much. Worst case scenario, I use adblock on techspot. For them, if they push ads too hard then they'll start losing members. some ads are okay, full page things that popup while you're reading and take up the entire screen ARE NOT okay.
     
  9. Run KMC

    Run KMC TS Rookie

    I think Ncix should have continued keeping their stores in lower rent locations instead of higher profile, but high rent locations.
     
  10. Julio Franco

    Julio Franco TechSpot Editor Posts: 7,622   +970

    And I agree. Something must be off with those mobile ads (beginning of the month) so hopefully I can dial that down to our normal level of ads. Emailing our ad guys right now so they can take care of this in the morning.
     
  11. captaincranky

    captaincranky TechSpot Addict Posts: 12,796   +2,449

    I would think it was quite normal, and to be expected, that ad quantity and frequency would be way up during the month of December. You know, Santa Claus and all that. Dialing them back too much during this season,seems it would be like the site administrator shooting himself in the foot. :oops:
     
  12. Robert3892

    Robert3892 TS Rookie

    If they are in bankruptcy why is there website still working and does this affect the NCIX USA webstore as well?
     
  13. captaincranky

    captaincranky TechSpot Addict Posts: 12,796   +2,449

    In reality, Microcenter's business model is much closer to ncix than Newegg. So, if I were going to sit and wonder who would be next going under, Microcenter would be at the head of the list. (Although Best Buy (IMO), is just as suspect.

    Well, perhaps they're only filling orders for which they have inventory which ,they have on hand.

    You'd figure they'd rather get full pop at retail, as opposed to pennies on the dollar at auction. That's assuming this is a full bankruptcy, (Chapter 7), and not a "restructuring". (What US law calls "Chapter 11", which allows a company to remain in business while forming a plan to satisfy their creditors).

    Chapter 11 usually entails closing some locations, layoffs, and debt interest rate negotiations. Under Chapter 7, which is the "end of the road", the doors are locked, and all assets auctioned off.
     
  14. MaXtor

    MaXtor TS Booster Posts: 141   +33

    What a shame, NCIX was always my go to online store when building a new computer. Their pricematching, selection, and cheap shipping made them unbeatable (in Canada). I imagine Amazon moving into Canada killed much of their business.
     
  15. Khouri

    Khouri TS Rookie

    They likely filed for Chapter 11, not Chapter 7. Chapter 11 pretty much says they have the assets and potential income to pay off their debts, Chapter 7 would be if they had no chance of breaking even

    EDIT: I mixed up the numbers and fixed it :p
     
  16. Gezzer

    Gezzer TS Rookie

    Wow, I've always knew that Linus had a lot on the ball. But that idea was brilliant and dovetails perfectly with my shopping habits.

    Right now the only place I have to just "run into" for tech stuff is the source, or walmart which kind of sucks. But I still do use the source and even check their prices/availability before ordering online. If they come reasonably close after shipping, etc. I just buy it from them instead of ordering it. I would of been a steady NCIX customer with his concept if I'd had one locally.

    As it is NCIX just lost my business over the years, I started finding Newegg.ca and Amazon.ca were just better all around. More in stock, better prices, better shipping options and rates. NCIX only caught my attention with the constant sales, but the discounts were often on really shoddy items I wouldn't buy for any price, so after awhile I even stopped checking those out.
     
  17. Jules Mark

    Jules Mark TS Rookie

    I bet the massive Vancouver property tax/rent along with the cost overhead killed them. Believe it or not my 27.75$ cad/h is minimum wage in Vancouver.

    Every bungalow is worth over 1.3 mil CAD, a single bedroom apartment cost 2020$ a month. Even if you do own a property, the city tax, provincial tax will suck you dry like a leech!
     

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