How good are bankruptcy liquidation deals?

March 22, 2012 3:50:55 PM PDT
Another casualty of the slow economy, Roomstore is liquidating all their stores in Houston after filing for Chapter 11 bankruptcy protection.

We've seen several liquidation sales over the last few years, but if you are looking for the best deal, experts say you have to do your homework before buying.

It's easy to see that Roomstore is closing its Houston stores. But how are the deals?

Kimberly Clark and her mom were looking for a child's mattress, but left empty handed.

She said, "I thought for a store closing, I think they are still kind of overpriced for what they actually have left."

"The old days with liquidation people always equated that to, 'I am getting the best deal, they are going away, they got to sell it' -- maybe, maybe not," said Dan Parsons with the Houston Better Business Bureau.

Parsons says while it is possible to find deals at liquidation sales, consumers should look beyond the flashy banners.

"It goes back to that old song, shop around," he advised. "It is the only way you know, again, not for like items, but for comparable."

Parsons says the liquidators running a sale can keep bringing in merchandise until the store closes. Parsons says if one store can sell items with just a 10 percent discount, merchandise from other stores can be shipped to that location.

"One of the advantages you can do in a bankruptcy liquidation sale that you cannot do in a going out of business sale is you can increase inventory," Parsons said.

When it comes to this liquidation sale, Roomstore officials tell us this is a legitimate sale, but another company, Planned Furniture Promotions, is handling the sale process.

That company tells us, "We encourage all Houston consumers to shop and compare and we are confident that they will continue to find outstanding values in liquidation prices."

Some customers like what they are finding.

Shopper Ed Platz said, "We had a good deal, enjoyed it."

Platz walked out of Roomstore with an area rug. He says he paid hundreds of dollars less than the original asking price.

"You have to negotiate," he recommended. "You have to negotiate."

As for when the stores close, we are told there is no set schedule, but these stores are in fact going out of business.

Load Comments