Shop Talk
Retailers, consumers and prices
Everything you ever wanted to know about liquidation sales
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?
Do your homework before you go shopping at one of these sales. Warning — you might not find the sales staff very helpful. Many liquidators tend to employ not-so-knowledgeable sales staff, simply because that’s all they can afford. And yes, don’t expect your cheap television set to be shipped home. You will most likely have to do it yourself.
Remember to check the warranty on the product. Whether it’s issued by the maker or a third party, it should still apply after the store goes out of business. Nevertheless, you might still want to call the manufacturer to confirm, especially if the brand is not one that the retailer normally carries.
Check Out Line: Chapter 11, here we come
Check Out the latest bankruptcies.
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:
Retail sales slump, Commerce Department says
U.S. 2009 auto sales seen at 27-year low
Peanut butter being recalled in Salmonella outbreak
(Reuters photo)
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Resident Shop Talk Expert
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I’ve been in the liquidation business going on 20 years.My company works with the mom and pop stores in this country and we help them to pay off debt and /or retire.The owners retain ownership and are advised not to mark their goods up the way other liquidation companies do after they buy business’s out of bankruptcy courts. Our services are true to the merchant and the community