Going-out-of-business sales at four area Brendamour's Sporting Goods stores might begin as early as today, as the retailer awaits court approval to liquidate its stock. That approval is expected to come today.
Hillco/Great American Group, a Northbrook, Ill., liquidator, outbid Gordon Brothers Cos. of Boston for the job Thursday, guaranteeing to pay Brendamour's 36.5 percent of the retail value of its merchandise.
The bidding took place after a delay by the Ohio Attorney General's office, which wanted assurances that the sale would comply with consumer-protection laws.
Any revenue from the liquidation that exceeds 56 percent of the value of the merchandise will be divided evenly between Hillco and Brendamour's Inc.
Total revenue from the liquidation still won't amount to much. The value of Brendamour's inventory at its 12 remaining stores is estimated to be $3 million to $3.4 million, an indication that the retailer had stopped stocking its shelves. Brendamour's closed five of the stores last week, deciding to liquidate rather than continue with a reorganization under bankruptcy court protection from its creditors.
Brendamour's attorney, Stephen Lerner of the firm Taft, Stettinius & Hollister, said the sum guaranteed to Brendamour's under the liquidation contract should be enough to repay the retailer's secured creditor, Minneapolis-based Norwest Bank Minnesota. Mr. Lerner said there remains a conflict over the sum the bank is owed, though Peter Chapman, an unsecured creditor, said his lawyer told him that the amount is about $800,000.
The seven remaining open stores - including those at Kenwood Towne Centre, and Tri-County, Northgate and Florence malls - will conduct the sales. The liquidation will continue no later than May 18, though the sale at the Northgate store will end by April 30.
Brendamour's attempt to move forward in an emergency hearing to appoint a liquidator was stymied Wednesday when the Ohio Attorney General's office objected to how advertising for the sales could be presented.
''They wanted reductions based on sales price, and we wanted to base it on regular price,'' Mr. Lerner said.
He said the sides agreed on advertising that complies with the law and that reductions will not be based on merchandise's sale prices.
