Elements Of Bankrupt Inventory Liquidators

Mar 27th, 2014 | By | Category: Info

Today’s marketplace is extraordinarily competitive. Whether you sell merchandise online or in a brick-and-mortar retail store, the prices you pay for inventory can tell the difference between profit and financial ruin. Sole proprietorships and small, family run businesses often have the greatest to gain-or lose-in the set of inventory acquisition and resale. Thankfully, liquidators have stepped in to fill the gap by providing businesses with high-quality inventory at wholesale prices.

In essence, liquidators buy surplus inventory. Sometimes their merchandise comes from a large retailer’s overstock, while at other times they buy discontinued items or excess stock from manufacturers. They also buy closeout merchandise when a retail store or supplier goes bankrupt, as well as other circumstances where inventory liquidation comes into play.

Which leads us to….

There are a variety of reasons why large retailers, manufacturers, and suppliers appreciate the services that a liquidator provides. For example, a liquidator will buy a vast quantity of merchandise, giving the original owners the capacity to dispose of their entire excess inventory in one fell swoop. There are also times when a supplier or manufacturer doesn’t wish to impinge upon their existing wholesale or retail markets, and turns to a liquidator to see to it that the merchandise doesn’t go through existing sales channels.

The bankrupt Caldor Corporation is being sued for $26 million by a liquidators’ group that contends that it paid too much for inventory at the discount chain’s 145 stores. The liquidators, Gordon Brothers Retail Partners LLC, Schottenstein Bernstein Capital Group LLC and The Ozer Group LLC, agreed to pay $223.7 million for Caldor’s remaining inventory in February, 85 percent of the money immediately. Caldor, of Norwalk, Conn., said in January that it was going out of business. Caldor had agreed to …

So is a liquidator important? This question can be answered by suppliers, manufacturers and retailers who operate in large scale. But the services of experts are also appreciated by original property owners. The liquidator saves the owners the agony of having to sell their property in small quantities because the liquidator buys all the property at once. They will do more than buy and sell. Some times they help in insulating markets from shocks. If a supplier wants to sell a great deal of inventory, he can use a these services to guarantee that the stock doesn’t go to the wholesale and retail stores. This ensures that the contract prices remain the same; increase in supply would mean decrease in prices in a free market economy.

The only limit is your imagination, as for the kind of products that liquidators carry. Apparel, sunglasses, footwear, and wedding gowns are often in stock, but you might also find flooring, automotive parts, shelving, and other items.

Liquidators provide an incredibly inexpensive source of inventory, for etailers or discount retailers. Because liquidators pay only pennies on the dollar, even the most expensive items sell at a portion of their wholesale prices. While some liquidators only sell pallets of a single item, small sellers can take heart in recognizing that the best liquidators often sell in much smaller loads. For example, you may just have to buy 50 belts, 10 wedding dresses, or 20 evening dresses.

For the purchaser who is an eBay seller, who sells at flea markets, or who’s got a small discount store, the opportunity to buy in small lots is a bonanza. It’s extraordinarily difficult to identify sources for high-quality, inexpensive inventory, but liquidators enable even the smallest business to sell at a profit. And, when liquidators have closeout sales, you can often get free shipping with a minimum order.

One of the major problems that etailers and discount retailers have is finding a reliable source for products. One of the major problems that manufacturers and suppliers have is finding a single middleman who’ll pay cash for excess inventory. Liquidators serve both constituencies, bridging the gulf between those who’ve the merchandise and the people who need it for resale. Ultimately, they allow small sellers to stay competitive and make a profit, while enabling suppliers to maintain a positive cash flow and stay afloat.


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