Retailers, consumers and prices
Ever walked out of an out-of-business sale hoping to return when the discount gets even deeper? Ever found your much-desired bargain-priced pair of shoes or television set already snapped up by an early bird?
With so many U.S. retailers going out of business and many having liquidation sales (Circuit City, Goody’s and Linens ‘n Things are three recent examples) savvy consumers should prepare in advance to get a good deal amid all the chaos.
So, what do we do? Check out ShopSmart’s five quick tips to make the best out of liquidation sales.
Always check prices at local stores before buying something at a liquidation sale. Sometimes, they slash prices to tackle threats from their rivals that have gone kaput. Plus, it doesn’t hurt to do business with a store that might be around for a while, does it?
Gottschalks filed for Chapter 11 bankruptcy protection on Wednesday after a tough holiday season. The company said it would pursue options including the possible sale of the company.
For those of you wondering “Got who?” — Gottschalks is a chain with 61 stores, most of them in California. Gottschalks said it had negotiated $125 million in debtor-in-possession financing from a group of lenders led by GE Capital.
Gottschalks was not alone. Goody’s LLC, a privately held clothing retailer that emerged from bankruptcy in October, filed for Chapter 11 protection again and said it plans to liquidate its remaining 282 stores.
Goody’s said it had investigated a number of alternatives, and ultimately concluded that the best way to maximize value for creditors was to conduct an orderly liquidation.
Gottschalks and Goody’s join KB Toys (shown here), Circuit City and other retailers who have filed for bankruptcy protection recently as consumers cut back on purchases amid the recession.
Also in the basket: