Liquidation World Inc.

Liquidation World Inc.

March 17, 2011 17:40 ET

Liquidation World Initiates Cost Reduction Initiatives

BRANTFORD, ONTARIO--(Marketwire - March 17, 2011) - Liquidation World Inc. (TSX:LQW) announced today that it has undertaken the following initiatives aimed at streamlining its operating expenses and preserving cash resources.

A reduction-in-workforce of approximately 20 positions has been announced which, when fully implemented, is expected to reduce operating expenses in excess of $2 million on an annualized basis. The Company announced that Ms. Lynda Murray, Executive Vice-President, Marketing, Ms. Corrie Prince, Vice President of Human Resources, and Mr. Jeff Weinman, Vice President of Real Estate will be ending their employment with Liquidation World in June, April and March 2011, respectively. Additionally, Mr. Charles Brunjes, Chief Merchandising Officer, will end employment with the Company today and serve as a consultant through August 2011.

In connection with today's announcement, the Company will reflect an appropriate restructuring charge in its financial results for the second quarter ending April 3, 2011. 

In addition, the Company announced that it has retained Insight Group, a global specialist in supply chain optimization to assist in the roll out of cost reduction measures, distribution synergies, and optimization of the Company's two Canadian distribution centers. 

Seth Marks, President and CEO commented: "We are grateful for the contribution made by all of the employees directly impacted by today's decision and wish them well. The positions of Mr. Brunjes, Ms. Murray, Ms. Prince and Mr. Weinman will be assumed by existing leadership within our organization. Additionally, we are going to continue to look at every aspect of our operations that can be streamlined to improve efficiencies and reduce expenses."

Forward-Looking Statements

This release includes forward-looking statements and potential future circumstances and developments. Forward-looking statements regarding future performance are subject to risks and uncertainties, and actual results may differ materially. Due to fluctuations in gross margins and expenses, an increase in revenue does not directly correlate to an increase in net earnings.

About Liquidation World

Liquidation World operates 93 stores in Canada and one in the United States. Liquidation World is based in Brantford, Ontario. The Company opened its first store in Calgary, Alberta in 1986 and today, with more than 1,500 employees, is Canada's largest operator of closeout retail stores.

Contact Information

  • Liquidation World Inc.
    Seth Marks
    President & CEO
    866-237-3778 (FAX)
    Liquidation World Inc.
    David Becker
    Interim CFO
    866-237-3778 (FAX)