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Experts: Compare discounts on Borders sales merchandise
Jaclyn Trop/ The Detroit News
Shoppers can receive discounts of up to 40 percent at Borders bookstores in Michigan and nationwide today as liquidation sales begin, but experts warn consumers to comparison shop to ensure they get bargains.
All 399 Borders locations will start liquidation sales, including the 26 stores in Michigan.
The liquidation approval came asBirmingham, Ala.-based bookstore chain Books-A-Million said Thursday it wants to buy 30 of Borders' store leases.
Gift cards will be honored during the going-out-of-business sale, according to Hilco Merchant Resources, one of the liquidators in the deal a bankruptcy judge approved Thursday.
But discounts on books and other merchandise may not be as good as they appear since liquidators still are looking to generate as much money as possible and make a profit, said Patrick Bennett, director of community relations for the Better Business Bureau of Detroit and Eastern Michigan.
"Sometimes they (the liquidators) inflate the price so that it isn't a discount," Bennett said. "Consumers should shop around and make sure it is a deal before they make that purchase."
The going-out-of-business sales also could prompt Borders' competitors to offer their own discounts, Bennett said, adding to the argument for comparison shopping. Borders' competitors include Barnes & Noble, Amazon.com and Walmart.
Consumers need to be flexible and get a sense of how other shoppers are reacting to the sale, said Jack Gillis, director of public affairs for the Consumer Federation of America.
"If it's crazy, and the prices are right, buy immediately," Gillis said. "Otherwise, if the merchandise is moving slowly, wait. You'll find that prices will go down as the time goes on."
Borders said late Thursday that it would handle returns of purchases made before today (Friday) under its existing return policy. Purchases made during the liquidation sale are final, the company said.
Existing Borders Bucks coupons can be redeemed until they expire on July 31, Borders said. Borders Rewards PLUS members will still receive additional discounts on certain purchases at the beginning of the liquidation sale, the company said.
Bankruptcy law experts said it is rare for a retailer in liquidation to be flexible about service and coupon redemption. They urged customers to hurry if they want to take advantage of sales, use gift cards or make returns.
"Returns are almost never allowed in liquidation sales," said John Pottow, a bankruptcy law expert at the University of Michigan Law School, who added that he would certainly rush to make a return.
Customer service at the stores is likely to take a hit, said Birmingham-based retail consultant Ed Nakfoor.
Bennett of the Better Business Bureau agreed.
Even though the liquidators are keeping the 466 employees at the 26 Michigan stores, they may minimize the number of shifts that employees work to keep costs down, he said.
Liquidation means "there's no one to complain to, there's no customer service department, no special orders and, most important, no returns," Nakfoor said.
"You buy it. It's yours. You change your mind? It's still yours."
From The Detroit News: http://detnews.com/article/20110722/...#ixzz1SrpHLawi
Jaclyn Trop/ The Detroit News
Shoppers can receive discounts of up to 40 percent at Borders bookstores in Michigan and nationwide today as liquidation sales begin, but experts warn consumers to comparison shop to ensure they get bargains.
All 399 Borders locations will start liquidation sales, including the 26 stores in Michigan.
The liquidation approval came asBirmingham, Ala.-based bookstore chain Books-A-Million said Thursday it wants to buy 30 of Borders' store leases.
Gift cards will be honored during the going-out-of-business sale, according to Hilco Merchant Resources, one of the liquidators in the deal a bankruptcy judge approved Thursday.
But discounts on books and other merchandise may not be as good as they appear since liquidators still are looking to generate as much money as possible and make a profit, said Patrick Bennett, director of community relations for the Better Business Bureau of Detroit and Eastern Michigan.
"Sometimes they (the liquidators) inflate the price so that it isn't a discount," Bennett said. "Consumers should shop around and make sure it is a deal before they make that purchase."
The going-out-of-business sales also could prompt Borders' competitors to offer their own discounts, Bennett said, adding to the argument for comparison shopping. Borders' competitors include Barnes & Noble, Amazon.com and Walmart.
Consumers need to be flexible and get a sense of how other shoppers are reacting to the sale, said Jack Gillis, director of public affairs for the Consumer Federation of America.
"If it's crazy, and the prices are right, buy immediately," Gillis said. "Otherwise, if the merchandise is moving slowly, wait. You'll find that prices will go down as the time goes on."
Borders said late Thursday that it would handle returns of purchases made before today (Friday) under its existing return policy. Purchases made during the liquidation sale are final, the company said.
Existing Borders Bucks coupons can be redeemed until they expire on July 31, Borders said. Borders Rewards PLUS members will still receive additional discounts on certain purchases at the beginning of the liquidation sale, the company said.
Bankruptcy law experts said it is rare for a retailer in liquidation to be flexible about service and coupon redemption. They urged customers to hurry if they want to take advantage of sales, use gift cards or make returns.
"Returns are almost never allowed in liquidation sales," said John Pottow, a bankruptcy law expert at the University of Michigan Law School, who added that he would certainly rush to make a return.
Customer service at the stores is likely to take a hit, said Birmingham-based retail consultant Ed Nakfoor.
Bennett of the Better Business Bureau agreed.
Even though the liquidators are keeping the 466 employees at the 26 Michigan stores, they may minimize the number of shifts that employees work to keep costs down, he said.
Liquidation means "there's no one to complain to, there's no customer service department, no special orders and, most important, no returns," Nakfoor said.
"You buy it. It's yours. You change your mind? It's still yours."
From The Detroit News: http://detnews.com/article/20110722/...#ixzz1SrpHLawi
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