Ritz Camera Centers Inc. will liquidate up to 400 retail camera stores beginning Saturday. The move is part of a bankruptcy reorganization that is being supervised by the court. Wolf and Kits cameras are owned by Ritz, so many of those stores will be affected.

Time for liquidation sales

The “going out of business” sales will start Saturday as the first step toward shuttering the stores. Don’t run out and get payday loans yet, though. There is some debate about whether merchandise will really be discounted deeply enough to justify that.

CNET says “I wouldn’t expect huge discounts.”

Beware the liquidation sale

As we have learned from previous posts, liquidation sales are not always what they seem. By the time the liquidation sale hits, the firm overseeing the sale has already paid for the merchandise and is looking to make as much profit as possible. They often use the highest retail price listed for an item as a baseline for discounts.

About the company

Ritz Camera is a privately held company and the largest camera retail chain in the United States. The chain is made up of more than 1,000 stores.The company has  been around since 1918. It acquire Wolf Camera Inc. in 2001, after Wolf went bankrupt. Ritz filed for Chapter 11 bankruptcy protection in late February.

The bankruptcy deal

The court ruled that the bidding procedures Ritz outlined for the stores to be liquidated are fair. Also, Ritz is borrowing $85 million from Wachovia bank. Liquidation firms have already placed bids to oversee the sales.

Sticking around

Ritz Camera will still operate hundreds of stores in the U.S. And, like most modern retailers, you will still be able to order Ritz products online. Ritz’s other store brands, Besides Wolf and Kits, currently include Inkley’s and The Camera Shop.

Normally, I wouldn’t advocate that you get an online payday loan to buy “stuff,” but if it could end up saving you money in the long run, why not?

U.S. retailer Fortunoff has filed for bankruptcy, which means we might soon be seeing “going out of business sale” banners on their buildings. The company sells jewelry, dinnerware and furniture. If you’re on the market for any of these things, read on.

Liquidation sales

In an earlier article, I shared the truth behind liquidation sales. For the purposes of this article, here is the important part:

The best prices on merchandise can be found at the retail store before the merchandise is turned over to a liquidator. Prices are usually at their lowest the week before the going-out-of-business sale begins, when the company is trying to sell merchandise while they can still profit from it instead of selling it to the liquidator.

Given this fact, if Fortunoff is unable to sell the company, and it ends up going out of business, there will be a small window during which you can get the very best prices on the very best stuff.

Timing is everything

So, if Fortunoff announces it will go out of business and begins deeply discounting items before the “going out of business sale” signs are hung, it’s time to strike.

But what if that moment hits, and  you’re low on cash? Should you get a payday loan to take advantage of the savings? Well, that’s a problem for the calculator.

Do the math

Find out the discounted prices of the items you want to buy, add the fees that come with a payday loan. If this total is less than what you’d pay for the items at regular retail price, an online payday loan might be a good idea. That way you don’t run the risk of someone else snatching up the items before your  next payday. You also don’t run the risk of the prices going back up after the company turns its merchandise over to a liquidator.

Most importantly, when you take out an online payday loan, be sure that you’ll be able to repay it on time.