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EcommerceBytes-NewsFlash, Number 2574 - June 28, 2011 - ISSN 1539-5065    3 of 5

Liquidity Services Seeks to Close UK Operations

By Ina Steiner
June 28, 2011

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Liquidity Services may close its UK operations after losing a key client due to the economic downturn. Through the acquisition of Geneva Industries (Geneva) in 2008, Liquidity Services conducts sales of surplus assets and retail merchandise through its online marketplaces UK-Liquidation.co.uk and WillenTrading.co.uk.

The company explained in its filing with the SEC, "Following the acquisition of Geneva, the economic downturn and a low buyer adoption rate of online inventory sourcing have created ongoing losses that are not sustainable for Liquidity Services." According to Wall Street firm Janney Capital Markets, the downturn caused the bankruptcy of its largest client.

Liquidity Services has initiated consultation with employees as a result of its proposal to close its UK operations. The consultation period is scheduled to end on July 25, 2011. During the consultation period, sales will continue as normal. The company said if consultation does not avert the closing of operations, Liquidity Services would ensure an orderly transition in the coming months and would expect to have the process substantially completed by fiscal year end 2011.

About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.

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