Susan Wornick explains that this is a unique liquidation sale. Last year Levitz filed for bankruptcy. But Buyer Beware. Officials at the state Attorney General's office have issued a warning about such situations. Careful because while the Attorney General's office usually regulates liquidations closely, in this case it has no jurisdiction.
State law defines a liquidation as the selling off of existing inventory.
Last week we called the Levitz sale illegal because the liquidator brought in new merchandise. But in fact, it is legal in this case, because a federal court has allowed it. Despite the state AG's arguments that consumers could be victims of fraud and deception, a federal bankruptcy court has given Levitz's liquidators permission to run this sale according to terms not covered by state law. But, if the merchandise never sold here before, it's hard to know if it's really a good price. We did not bring in junk.