Liquidation World for sale
Liquidation World Inc. is on sale.
The money-losing operator of 106 "asset recovery" stores said Wednesday its board has formed a special committee "to investigate and evaluate strategic alternatives available to the company to increase shareholder value."
The committee of independent directors has retained outside financial and legal advice but "has not established a list of strategic alternatives, nor has it endorsed any particular course of action," the company stated.
"Furthermore, there is no guarantee that the work of the special committee will lead to any transaction."
Liquidation World also disclosed Wednesday that Darryl Chenoweth, senior vice-president of operations, is leaving the company bad credit payday advance. This follows the late-May departure of Maurice Chelli, SVP merchandising.
The company, Canada's largest liquidator with 1,600 employees, lost $5 million in its latest quarter, compared with a $3-million loss a year earlier. Revenue was flat at $42.2 million as same-store sales slid 4.2 per cent.
Liquidation World shares, trading at the $5 level a year ago, closed Tuesday at $1.56, representing a stock-market value of $12.9 million.