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Fewer stores and low inventory values on sales caused Liquidation World Inc. to see its net loss widen in the fourth quarter as revenue dropped.

The Ontario-based liquidator reported a net loss from continuing operations of $3.4-million or 21 cents per share for the quarter ended Oct. 4. That compared to a year-earlier loss of $2.7-million or 33 cents per share.

Revenue for the quarter totalled $35.6-million, down from $43.6-million last year.

Liquidation World said the 18-per-cent drop in revenue was largely the result of "historically low inventory values on sales" as well as a smaller store count.

Annual revenue was down to $157.8-million from $182.4-million in 2008.

For fiscal 2009, the company recorded a net loss from continuing operations of $17.6-million, compared to a net loss from continuing operations of $9.9-million a year before.

"As with most turnarounds, 2009 was a discover, test and execute year," said Seth Marks, the company's president and chief executive officer.

"We worked relentlessly to materially improve our store presentation standards, quality of merchandise, inventory and inventory control."

Mr. Marks said a comprehensive review of the business and a new marketing strategy will help improve the company's performance in the future.

"As we move forward, we continue to believe we have made substantial progress in the turnaround of this business," he said.

Liquidation World sells consumer merchandise obtained from bankruptcies and other inventory liquidations through 96 stores in Canada and one in the U.S.

The company employs more than 1,500 employees making it Canada's largest liquidator.

Its shares closed at 73 cents Wednesday on the Toronto Stock Exchange.



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