Great American Group Revenues Down in Q1

With fewer retail chains going out of business, liquidator Great American Group Inc. posted a net loss for the first quarter. For the quarter ending March 31, the Woodland Hills-based firm reported a net loss of $3 million, or $0.11 per diluted share, on revenues of $12 million. For the same period in 2009, the company had net income of $14.8 million, or $1.40 per diluted share, on revenues of $41.9 million. The difference between the two years is that in early 2009 Great American was selling off the inventories of chain retailers Circuit City and Mervyn’s. An improvement in the economy resulted in an overall lack of retail liquidation opportunities across the industry in the early months of 2010.. “We are disappointed with our operating results during the first quarter,” said company CEO Andrew Gumaer. “Our auction and liquidations business has faced a challenging environment, as credit markets have rapidly improved and lenders have increasingly chosen a strategy to extend maturities for defaulting borrowers.”