GREEN BAY, Wis. The rug supplier for nine Bon-Ton furniture galleries, including the Younkers Furniture Gallery in Green Bay is liquidating thousands of rugs in his inventory this weekend through an auction.
Farshchi's rug liquidation auction in Green Bay
Mohammad Farshchi, owner of Shemiran Rugs, was told he had to move his inventory of more than 2,000 rugs out of nine Bon Ton furniture galleries in a matter of eight days.
"The liquidators, when they took over they did not want us to continue with the rugs at their stores and they gave us an offer for us to be moving all the rugs from all nine locations to only one location in Vernon Hills, Illinois and it was just not a viable proposition that they gave us," said Farshchi.
"It all happened very quickly, I got a call one Friday and said we had to be out that week, and we were in a lot of stores, Green Bay, Milwaukee, Carson's in Chicago, a couple stores in Ohio, we had to get the merchandise out within a week," said John Schmidt, sales manager for Younkers Furniture Galley Rug Department.
Action 2 News reported Younkers' parent company, Bon-Ton Stores filed bankruptcy in February. A total of 12 Younkers stores in Wisconsin are closing, putting more than 2,200 employees out of jobs statewide.
"It's not great, it was a surprise, I mean it happened very quick, you know we weren't given a lot of notice as far as when we had to be out, I mean it's you know one week I had a job, then next week I don't have a job," Schmidt said.
Farshchi brought in three truckloads of rugs to the auction from stores in Wisconsin, Illinois and Ohio.
"We didn't have a warehouse to take all the rugs to so we had to expeditiously secure some warehouse space and then we arranged this auction very quickly to help liquidate our inventory," said Farshchi.
The rugs ranging in sizes and design, priced from $50.00 to tens of thousands of dollars. One of the rugs auctioned Saturday was a Persian hand-woven rug, originally priced at $30,000 and sold for a fraction of its cost at $3,000.
"Some items might sell below cost, some at cost and some slightly above cost, at the end we're just trying to liquidate inventory," Farshchi added.
Farshchi decided to pay it forward with the auction, donating a portion from the rug sale to The Veterans Outreach of Wisconsin.
"We're making a $1,000 donation, regardless of how much we sell or anything, we're making that $1,000 donation," says Farshchi.
Younkers Furniture Gallery workers say the liquidation process happened ‘very quickly’ and with ‘little notice.’
"Mid-April the company was bought by a liquidator, we were originally led to believe that we were going to be there throughout the rest of the summer, you know just like the furniture and department stores would be open and then just within a week and a half you know we got pushed out, so it happened very very quickly," said Schmidt.
Schmidt says he was surprised to find out how quickly he'd be losing his job.
"As far as I'm concerned on the third I'm out of a job, at this point all of our other associates aside from the auctions, we're all out of jobs," Schmidt added.
The rug auction continues at the Hyatt Regency-KI Convention Center on Sunday, preview begins at 11 a.m. and the auction beginning at 1:30 p.m.