Hello David,
At the moment there is no such feature in X-Cart 5, but it can be implemented as a custom module.
As a quick hack you can add the following rules at Backend -> Look & Feel -> Custom CSS tab:
Code:
.product.out-of-stock .product-photo > a:before {
content: 'Sold out';
color: red;
font-size: 20px;
display: block;
position: absolute;
left: 0;
right: 0;
top: 50%;
height: 1em;
margin-top: -0.5em;
text-align: center;
}
Not the best solution, but may work while you are creating a more solid custom module.