When liquidators started sales at Linens 'n Things, ABC News found new, higher price tags on top of older, lower ones. In this way, a going-out-of-business sale is much the same as a regular clearance sale. The steepest discounts are on the items in least demand, like out-of-season clothing. This is especially true if some of the store's locations remain open — items that can still fetch a decent price might be moved to another store instead of being marked down. Brands with a lot of cachet may not allow their products to be sold during going-out-of-business sales at all.

It may seem like a no-brainer, but if you have a gift card to a store that's going out of business, use it right away — if you're allowed to do so at all. It's common for stores to continue accepting gift cards during liquidation sales, but shoppers are often given a deadline. For instance, when Toys R Us closed its stores, customers had about a month from the time of the announcement to use any gift cards.

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Never blindly assume you'll get the best deal at a going-out-of-business sale — whip out that phone and comparison shop. If a liquidation company uses the tactic of setting "original" prices higher than they were before the store announced it was closing, sale prices at other retailers may actually be lower. You might not expect to find rugs at an electronics store that's closing, or furniture at a fashion retailer.

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But that happens when a liquidation company brings in more items from its warehouses to plump up inventory. Be especially cautious here — chances are, these are things that didn't sell at previous going-out-of-business sales. They might be refurbished or otherwise slightly "off. This is par for the course at a going-out-of-business sale, when discounts progressively deepen the longer the sale goes — and it typically lasts at least a couple of months.

But shoppers who wait for better discounts will have less inventory to choose from, so a middle-of-the-road approach may work best. Obviously, that means returning a sweater with a hole, or a toy that didn't have all its parts, is a no-go.


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So look things over very carefully before you buy them, and consider shopping sales at still-healthy retailers for bigger purchases. For a good variety of merchandise to choose from, it's crucial to head to the right store. That means targeting locations that are traditionally busier — those are the ones that end up with the most items when liquidators distribute inventory.

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