Shopping Discussion

PSA: All NCIX stores in Ontario closing. Update: NCIX has filed for bankruptcy

  • Last Updated:
  • Dec 16th, 2017 4:01 pm
Jr. Member
Aug 28, 2017
198 posts
43 upvotes
EEE2 wrote:
Dec 7th, 2017 11:01 am
Correct me I am wrong, but for some of the products NCIX sells, they acted like a "middle man" the actual vendor would ship-out sell any item they listed on their site, then once sold NCIX would get it profit for the sale?
Most computer retailers will do drop ship orders from a distributor for items they do not have in stock since this is less risk. NCIX charges customers in full for items they don't have in stock and then orders it from a distributor or vendor. Many customers got caught in this process as NCIX changed the website months ago to make items they don't have in stock and were in stock with distributors look like they were actually in stock at NCIX. They removed the on hand inventory information to complete the ruse. As you can see from the creditor list NCIX owed over 15 million to the big distributors in Canada and was on credit hold with them. In addition the creditor list shows how few remaining brands they were still buying directly from. They ran up credit cards trying to order product prepaid from either distributors or vendors or in many cases other retailers like Amazon or other local computer stores. Some customer orders got filled but a lot of money was used to pay creditors instead. This is why you have customers complaining about orders 3-4 months old that were never filled.

They also had consignment deals with some of the vendors that you can see on the filing. For those they sent inventory to NCIX then NCIX would give them almost all of the profit from the sale and pay for the inventory as it sold to customers.
Jr. Member
Aug 28, 2017
198 posts
43 upvotes
EEE2 wrote:
Dec 7th, 2017 1:52 pm
I really hope they some how recover. If they go away. Wont be good for competition. Canada Computers is already rude and overpriced, this will make them even worst.
There will probably be more competition if they do go away, at least for some years since everyone will be fighting to gain that extra market share. There is a lot of business to fight over which means cheaper prices and more promotions.
Jr. Member
Aug 28, 2017
198 posts
43 upvotes
badOne wrote:
Dec 6th, 2017 10:30 pm
I wonder if Mr Wu had to declare personal bankruptcy. That would be sad - worked this hard to screw it all up this late.
The filing indicates debt from the owner and his wife from shareholder loans, credit cards and bank accounts. In addition to that some houses were sold to provide ncix with some capital. At least one vendor requested a lien on a personal property.
Deal Fanatic
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Jul 17, 2008
7685 posts
1383 upvotes
hv6478 wrote:
Dec 6th, 2017 10:25 pm
Yes you should absolutely dispute it with your credit card company! They're there for your protection. 100% call them and report it.
I don't think they will do anything if they know they can't get their money back themselves
Deal Addict
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Dec 3, 2004
4456 posts
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Vancouver
Freeatlast wrote:
Dec 6th, 2017 9:34 pm
Highlights below for those who don't want to run through the pdf. The actual amounts may not all be in CAD.

Banks/credit cards - A surprising amount of this is credit card debt. NCIX spent the last few months running up credit cards to pay for customer orders until they were tapped out.
  • American Express - $4,536,211.66
  • Bank of Nova Scotia - $3,746,750.00
  • Bank of Montreal - $18,340.31
  • CIBC - $354,057.83
  • RBC - $132,501.28

Distributors:
  • ASI - $2,790,992.61
  • D&H - $54,625.70 (Officially wins award as smartest of the Canadian distributors)
  • Ingram Micro - $3,699,861.76
  • Synnex - $7,524,536.40
  • Tech Data - $660,913.47
  • Tenva (Avnet) - $969,429.10

Vendors duped by consignment
  • Be Quiet - $57,414.95
  • EVGA - $369,332.35
  • Pulselabz - $5,724.80
  • Shimono - $11,224.50

Individual vendors - Many vendor names not here indicating how many had cut them off.
  • A-data - $290,763.13
  • Corsair - $1,101,671.48
  • Fractal Designs - $221,565.95
  • Gigabyte - $760,224.85
  • GSkill - $193,435.15
Wow, what a mess.
Deal Addict
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Mar 31, 2017
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And this is why manufacturers should never allow retailers to buy directly from them. If gigabyte and the rest went through proper channels they wouldn't be on the hook for this mess.
Deal Expert
Aug 2, 2004
25895 posts
2889 upvotes
East Gwillimbury
Not sure what they were thinking. Even if you have 15% margin (we know that isn't true) on product sold. Buying from suppliers using a credit card and then paying 19.5% interest to the credit card companies doesn't make any sense.
Last edited by Gee on Dec 7th, 2017 7:27 pm, edited 1 time in total.
Newbie
User avatar
Feb 11, 2015
46 posts
13 upvotes
Vancouver, BC
Forums giving a 500 Internal Server error

Welp...guess that one dude got tired of deleting posts so he shut down the entire forums. JFC
something something nothing why did you copy this

You wanna play reverse Russian roulette? Buy something from NCIX.
Jr. Member
Mar 20, 2016
109 posts
51 upvotes
Vancouver
Messerschmitt wrote:
Dec 7th, 2017 5:37 pm
I don't think they will do anything if they know they can't get their money back themselves
Of course they will refund the money, he paid and didn't receive anything.
This is part of why they charge such large processing feeds (5%+). To cover theft, rewards points, and various other losses. Amex profit is something like 2 billion dollars.
Newbie
Dec 15, 2015
27 posts
2 upvotes
Canada
I stopped by tonight with friends to try to pick up reward items, we were greeted with an empty parking lot and this posted everywhere:
Image

So yeah, don't waste your time dropping by.
Newbie
Feb 16, 2017
46 posts
15 upvotes
Richmond, BC
I don't know if it has been mentioned or not. Seems like Canada Computers is taking over most of the NCIX stores in metro vancouver area except for Langley and Surrey. Uploaded pic from their site.

http://www.canadacomputers.com/location ... 0gm3org3t2

(https://imgur.com/lqy5YvR)
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Jr. Member
Aug 28, 2017
198 posts
43 upvotes
XSHABX wrote:
Dec 7th, 2017 8:48 pm
I don't know if it has been mentioned or not. Seems like Canada Computers is taking over most of the NCIX stores in metro vancouver area except for Langley and Surrey. Uploaded pic from their site.
Covered a while back. Landlords wanted NCIX removed and gave CC a discount on the leases. Opening should be pretty close now.
Jr. Member
Aug 28, 2017
198 posts
43 upvotes
CSX222 wrote:
Dec 7th, 2017 8:36 pm
I stopped by tonight with friends to try to pick up reward items, we were greeted with an empty parking lot and this posted everywhere:
Image

So yeah, don't waste your time dropping by.
Nice sign. Having your money stolen is always inconvenient.
Jr. Member
Aug 28, 2017
198 posts
43 upvotes
Gee wrote:
Dec 7th, 2017 7:27 pm
Not sure what they were thinking. Even if you have 15% margin (we know that isn't true) on product sold. Buying from supplies on credit card and then paying 19.5% interest to the credit card companies doesn't make any sense.
If they fill a percentage of orders it allows the illusion things are getting processed and keeps customers placing new orders or holding off placing chargebacks. Profit doesn't matter if you don't plan on ever paying the bill.

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