U.S. retail giants squeeze out Bowring, Benix and Bombay & Co.

Even stores catering to higher-end shoppers can’t avoid being squeezed by the growing presence in Canada of giant U.S. discount chains.

Bombay & Co. Inc., Bowring & Co. Inc. and Benix & Co. Inc have become the latest casualties dragged under by a wave of U.S. discount and big-box chains across the border.

The trio, which sell upper-scale home furnishings and kitchen ware, filed for bankruptcy late last week. The three operate more than 119 locations.

“The housewares industry in Canada has become increasingly competitive, particularly with the recent entry of large-scale retail chains into the sector,” Fred Benitah, the head of the company that owns the three stores, said in a bankruptcy court filing.

While U.S.-based rivals such Bed Bath and Beyond, Home Sense and Williams-Sonoma have stepped up their efforts to grow in Canada in recent years, the arrival of Target last year — and its sizable home decor section — has dealt a significant challenge, experts say.

Target has opened 130 stores across the country since March 2013.

READ MORE: 5 reasons why Target is squeezing lower prices from suppliers 

While there may not be much direct overlap of products, Target’s arrival has placed added pressure on other homeware retailers, such as Home Sense, that do offer comparable goods to Benix and the other two higher-end chains.

“This increased competitiveness had a significant impact… on Benix store locations” in particular, Benitah said.

According to the court documents, some Benix locations were changed into Bombay and Bowrings banners, a move aimed at appealing to even higher-end shoppers, but the plan failed to pay off.

The Globe and Mail first reported the trio’s bankruptcy filing. The owner of the three chains is seeking a buyer or investor while it operates under court protection from creditors, which has given the company until early September.

The filing is the latest in a string among smaller independent Canadian stores feeling significant heat from Target’s arrival as well as expansion efforts at Walmart Canada and Costco, another U.S. big-box chain. Consumers and households are also grappling with record debt burdens to pay down.

Earlier this year, discount chain XS Cargo filed for bankruptcy protection. The chain operates dozens of locations in B.C., Alberta, Ontario and other provinces.

Some store owners have responded to the influx by introducing more premium offerings or store experiences.

READ MORE: With middle squeezed, Metro targets shoppers high and low

Grocers such as Loblaw and Metro are revamping supermarkets, putting special emphasis on their fresh foods as well as beefing up in-store customer service to keep patrons from shifting more of their spending to lower-cost competitors.