Chapters did not keep the box book store market to itself, however, with the opening of Indigo. Headed by Heather Reisman , Indigo began to compete with Chapters in select markets and opened 14 stores. Chapters aggressively expanded into online bookselling with to compete with Amazon and also was a majority investor in Pegasus, a book wholesaler. Pegasus was needed to be able to serve the online sales but the business was resisted by Canadian publishers and was not successful. In the autumn of 2000 Indigo launched a hostile takeover . Indigo was able to convince the Competition Bureau that Indigo was not a viable standalone business given the enormous losses that it was sustaining and thus had to be able to merge with the profitable Chapters retail chain. By early 2001, Indigo had been successful in purchasing Chapters, but kept both the Chapters and Indigo brands; subsequently a number of Chapters stores near Indigo locations were closed. In some cases, Coles and SmithBooks stores were shut down if they were too close to a Chapters site.