Shopping Discussion

PSA: All NCIX stores in Ontario closing

  • Last Updated:
  • Nov 21st, 2017 1:49 am
Jr. Member
Aug 28, 2017
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coriolis wrote:
Sep 18th, 2017 4:57 pm
They had a bunch at peak.

Best Direct
Direct Canada
Memory House
NX Source
Compu2000
Computer Canada
TDDirect
If you trace back the history of all of these Canadian sites using publicly available information (BBB, Manta, Etc) you'll find that all are owned by the same owner under one of three companies: Netlink Computer Inc, GTO Media Inc, and B&D Technology Inc. NCIX US is a seperate entity also owned by the same owner.

NCIX.com - Active
NCIXUS.com - Soon to be defunct or merged back to Canada operation.
NCIX.CN - ?
NCIX.TW - ?
Best Direct - Defunct.
Direct Canada - Active. Now operating as a division of Netlink Computer Inc (NCIX). Previously was setup under a different company, unclear if they have merged this back Netlink.
Memory House - Active. Website defunct, used as their marketplace account on various sites.
NX Source - Active. B2B sales.
Compu2000 - Active. Now operating as iGalleria (not sure the name change is an improvement as an aside).
TDDirect - Defunct. Changed to Best Direct.
GTO Media Inc - Active. Owns Hardware Canucks.
Hardware Canucks- Active.
Rackgo -Active.
SingleBasket - Development. Formerly Shopstar,

There is a bunch of other random side projects but these are the most relevant.

Any issues effecting Netlink Computer Inc will have an impact on these. All ecommerce websites that sell product leverage NCIX inventory and credit lines.
Jr. Member
Aug 28, 2017
155 posts
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Gee wrote:
Sep 18th, 2017 1:27 am
Prepaid or cash on delivery. (C.O.D)

If you order online. You pay your order with a credit card. Technically NCIX has the cash minus their markup to pay for your item with the distributor. It should be a no brainer.
Every NCIX customer with a backorder that is overdue by more than 2 weeks should be asking them, in a very pointed manner, why this no brainer solution is not occurring.
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Freeatlast wrote:
Sep 16th, 2017 2:54 am
Not listed for lease yet but perhaps the employees have opted not to return to work. Store is still listed on the website. Is that photo from today?
Noticed today as I was walking by, it was open. I wasn't close enough to see what the inside of the store was like, but the doors were open and the OPEN sign was lit.
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ALLCAPS wrote:
Sep 19th, 2017 2:37 am
Noticed today as I was walking by, it was open. I wasn't close enough to see what the inside of the store was like, but the doors were open and the OPEN sign was lit.
That lines up with what others have told me. Store reopened with the landlord calling the shots on the exit. Perhaps they'll move on to the next store closure with a store on a shorter remaining lease?
Penalty Box
Mar 23, 2004
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Freeatlast wrote:
Sep 19th, 2017 2:27 am
Every NCIX customer with a backorder that is overdue by more than 2 weeks should be asking them, in a very pointed manner, why this no brainer solution is not occurring.
Yeah but if NCIX is already not in good standing with that distributor or manufacturer, they wouldn't be able to get the product. A better question to be asking them in that case is, why are they selling these products and taking money from customers if they can't actually get them?

It's a really sad state of affairs, one I almost don't want to believe, being an NCIX customer for so long. But given the stories and the fact that there's no ISPU or stores around here anymore, I'm not about to order from them again at the moment. TBH I've never been let down by NCIX or DirectCanada to my recollection, and my last purchase from them was probably only a few months ago, but this is not looking good at all.
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Aug 28, 2017
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ES_Revenge wrote:
Sep 19th, 2017 9:54 pm
Yeah but if NCIX is already not in good standing with that distributor or manufacturer, they wouldn't be able to get the product. A better question to be asking them in that case is, why are they selling these products and taking money from customers if they can't actually get them?
Now you are getting it. Another way to frame the question might be why are they taking money for special orders and then not actually ordering them. A pretty plausible answer for that was given for that a few posts back.
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Jun 18, 2017
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It could be possible they're transitioning to a drop ship model: low inventory, but also probably lower customer satisfaction. The problem with most drop-ship suppliers is that they operate on pretty tight credit terms (e.g. N10 usually at the start, N30 when you break six digits, etc) so they could be robbing Peter to pay Paul I guess.
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PuddinTame wrote:
Sep 20th, 2017 3:22 pm
It could be possible they're transitioning to a drop ship model: low inventory, but also probably lower customer satisfaction. The problem with most drop-ship suppliers is that they operate on pretty tight credit terms (e.g. N10 usually at the start, N30 when you break six digits, etc) so they could be robbing Peter to pay Paul I guess.
NCIX is already setup with every major distributor and subdistributor in the country, in the IT sector, that drop ships. NCIX already has a history of drop shipping with distributors. NCIX recently laid off their team members responsible for coordinating that. NCIX already has (or had) net with every major distributor and subdistributor in the country, in the IT sector, NCIX has already made changes to the way they display on hand inventory (quantities now obscured) and uses gross inventory rather than net inventory numbers to determine available, NCIX already has many customers complaining about long term back orders (multiple reported cases over 1 month delays) with distributors, and NCIX is currently in the process of a restructuring of their company. From customer complaints and comments from current and former employees it seems apparent that they are having issues with suppliers releasing product to them for shipment. Every distributor, subdistributor, and vendor in the country will release credit held product on COD or prepaid terms. Special orders can be prioritized over replenishment restock when a retailer is on credit hold with a given distributor, subdistributor, or vendor.

Every distributor, subdistributor, or vendor in the country can get product to NCIX within a week (typically same or next day for anything on West Coast) or drop ship direct (all distributors, some subdistributors) to any of NCIX's Canadian customers provided they are paid. NCIX requires prepayment for any special order. If NCIX has a customer's money, and can prepay/COD orders with a supplier to get orders released even in the event they are on credit hold with said supplier, why are so many customers having issues with long term back orders? Why did NCIX turn off their incoming customer service phone line and leave customers stuck with 2 - 3 hour wait callback wait times? Why has NCIX laid off or had multiple customer service staff directly responsible for answering customer inquiries quit with the past month? Why did NCIX lay off their entire distribution team that coordinated orders with distributors and subdistributors and followed up on ETAs?

I'm going to leave it to the mathematicians here to specualte on the answer to those questions even though the most likely answer has already been given a page or so back.
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Jun 18, 2017
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Oh I'm sure that's all true, I was just saying that they be might shifting money and playing with the Nx balances. Collect payment on a N30 order(s), use it to pay off a N10 slip coming due, or more likely in this case, a N-10 that's already overdue. Maybe they need $x in prepaid orders (all) to be able pay off Vendor Y who they're already late on, that kind of thing. I was speaking to why they're still taking orders in the forlorn hope that some of those could work out. My guess is cash and credit are thoroughly bottomed out and they're just juggling plates right now, probably considering consolidation of the vendor debt (if they're lucky), restructuring through individual negotiation or bankruptcy otherwise.
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Aug 28, 2017
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PuddinTame wrote:
Sep 20th, 2017 6:47 pm
Oh I'm sure that's all true, I was just saying that they be might shifting money and playing with the Nx balances. Collect payment on a N30 order(s), use it to pay off a N10 slip coming due, or more likely in this case, a N-10 that's already overdue. Maybe they need $x in prepaid orders (all) to be able pay off Vendor Y who they're already late on, that kind of thing. I was speaking to why they're still taking orders in the forlorn hope that some of those could work out. My guess is cash and credit are thoroughly bottomed out and they're just juggling plates right now, probably considering consolidation of the vendor debt (if they're lucky), restructuring through individual negotiation or bankruptcy otherwise.
Correct. A plausible scenario is they are collecting payment on special orders that are (theoretically since credit holds and reduced terms are likely in play now) on N30 terms. Use that to pay overdue N30 accounts aging at 60 and 90 days. Prior to using customer funds for that, you would have used credit facilities from your higher velocity vendors to pay off your slower vendors that are 30-90 days past due. That ties in directly with the reduced inventory levels, turn your inventory multiple times within N30 terms and you have some ongoing positive cash flow to fund your other debt. If you can't sustain cash flow, vendors slap you with credit holds and reduced terms so now you have to move on to another funding source, leaving customers where they are today with special orders.

Your guess is plausible given that mortgaged or leased real estate is being sold off to reduce long term liabilities and they are trying to sublease or exit existing leasing agreements. That they are unable to apparently pay (based on the store reopening) the Surrey lease exit penalty is telling of where things currently stand, which is somewhere south of FUBAR.
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PuddinTame wrote:
Sep 20th, 2017 6:47 pm
Oh I'm sure that's all true, I was just saying that they be might shifting money and playing with the Nx balances. Collect payment on a N30 order(s), use it to pay off a N10 slip coming due, or more likely in this case, a N-10 that's already overdue. Maybe they need $x in prepaid orders (all) to be able pay off Vendor Y who they're already late on, that kind of thing. I was speaking to why they're still taking orders in the forlorn hope that some of those could work out. My guess is cash and credit are thoroughly bottomed out and they're just juggling plates right now, probably considering consolidation of the vendor debt (if they're lucky), restructuring through individual negotiation or bankruptcy otherwise.
Doesn’t sound like they can crawl out of this hole. There isn’t enough profit in the sales to catch up on the existing debt and pay the ongoing expenses.

Selling a $100 item at 10% only nets $10 profit. You have to sell a lot to get any substantial income. With customers loosing confidence in the organization, sales is going to get worse.

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