Retailers all around the country are filing for chapter 11 bankruptcy at an unprecedented rate. This mass of bankruptcies has led to a large number of store closings via liquidations. Liquidation scales may seem like a huge savings opportunity, however, stores attempt to maximize sales with the liquidations sales and so, consumers must use caution and a little common sense in order to find savings from a bankruptcy liquidation sale.
As big box and chain department stores such as Toys R Us and Clair’s announce bankruptcy and subsequent store closings, you can expect liquidation sales to be forthcoming. Toys R Us has announced a number of store liquidation sales across the country, including many stores in Texas. Bankruptcy allows stores to shed the lower performing stores while continuing to strengthen its balance sheet, negotiate with creditors, and improve existing stores.
Getting Good Deals at Liquidations
Store closing experts who manage liquidations sales due to bankruptcy in Texas claim that liquidations might not always be the best way to get a great deal on merchandise. It’s highly advisable to do pricing research before you set out bargain hunting. Liquidators like to increase the manufacturer suggested price and then discount the price. This means that while it may look like a great deal, you could be paying more than if you bought the product at its retail price.
Additionally, you should also load up your smartphone with a price comparison app before heading out. Getting an excellent deal at a bankruptcy liquidation sale is a balancing act. Retailers filing for bankruptcy and liquidating stores usually start around 20-30% markdown and then gradually increase the percentage of markdowns. This means for most that you need to time your visit to when there’s a significant discount but also a solid selection of items. Going the last week of a liquidation sale may mean that everything is 70%, but its typically slim pickings.
Finally, use your gift cards as soon as possible. If you have received a gift card from a company that is in bankruptcy trouble, it’s best to spend those or risk losing out. On some occasions, retailers will stop accepting gift cards after declaring bankruptcy or require that you spend a certain amount in order to redeem the gift card amount.
Texas Chapter 11 Bankruptcies
With big-name retailers such as Wet Seal, RadioShack, Hhgreeg, Vitamin World, and more filing for bankruptcy in the last 12 months and more bankruptcies expected, using these basic rules of thumb will help you obtain the biggest savings if you plan on taking advantage of the store closings. Stay tuned to our Bankruptcy Blog for the latest news on Chapter 11 bankruptcies in Texas and abroad.