Auction company shares what happens to leftover merchandise when stores close

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GREEN BAY, Wis. (WBAY) - All over the area you can't help but notice discount and closing signs at different stores.

Action 2 News wanted to know what happened to all the leftover merchandise when a store closes.

“We sell it on our website, and everything starts at 2 bucks, sells with no reserves and sells for whatever the buyer is willing to pay," John Dugan, owner of Titletown Auction Company, said.

Auction companies like Titletown Auction in Green Bay buy out whatever is left in a shuttered store and keep it in a warehouse.

“It doesn’t stay here for long," Dugan said. "A lot of it gets shipped out. We are third party merchants with Amazon. A lot of the inventory goes to their fulfillment centers.”

Dugan said business has been steady with Shopko's bankruptcy and Office Depot off West Mason St. closing.

He said the amount of merchandise left can vary quite a bit among retailers.

"Other stores will come really close and we’ll only have 150 to 200 items, but then there’s other stores like Office Depot that’ll still have $200,000 left of product left in the store after they close," said Dugan.

We reached out to multiple liquidation companies to discuss their role in the process, but they weren't able to talk.

“We negotiate a set rate with a liquidation company that handles the sell, and we come in on the last day," said Dugan. "When we show up they close the store and we buy out whatever is left -- and we’re required to buy everything.”



 
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