Sears Wholesale Liquidation Merchandise

Today I received an email from Alma who is new to purchasing wholesale pallets of merchandise. Alma has a question about reselling restrictions:

“I’m new to the liquidation business,  I am opening up a store, in which I have purchased a few pallets,  Can you tell me if I can leave the Original tags on. I have bought some clothes from Erika’s and they show that they are from Sears,My question is do I take the Original tags off?”

Brand protection and defacing is a very important part of reselling liquidation merchandise. If you intend on purchasing overstock, shelf pulls or customer returns you must adhere to strict guidelines if you are involved in reselling.

The following is taken directly from the salvage agreement you must sign if you intend to purchase wholesale liquidation merchandise from Sears and/or Kmart.

Defacing

Purchaser agrees to also remove or obliterate any and all nomenclature, plates, identification tags, sales tickets, documents, labels, legends, stencil information, manuals, instructions, price tags, or any other materials or information on the packaging, inside the packaging or on Salvage Goods which in any way identify Seller, or any affiliated or related company of Seller with the Salvage Goods, to include, but not be limited to, those marks identified on the attached Exhibit A.

Penalty

If Salvage Goods are discovered for resale in violation of paragraph 6, Purchaser shall be subject to a fine in an amount up to $50,000.00 per occurrence.

Sale of Salvage Goods

Purchaser shall warrant and ensure that primary and all secondary purchasers will not sell Salvage Goods for resale within a fifty (50) mile radius of any Kmart, Sears or affiliated retail store format, to include, but not be limited to, Sears Dealer stores, The Great Indoors and Sears Hardware and Appliance stores. Purchaser shall also warrant and ensure that primary and all secondary purchasers will not sell Sears or Kmart proprietary branded Salvage Goods for resale through catalogs or on the Internet including, but not limited to, auction sites, proprietary websites or email solicitations.

Erika’s Bargain Sales
8685 Scranton
Houston, TX 77075
Phone: 713-910-5414
Fax: 713-910-7799

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