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Even in a convalescent economy, the old aprism lds true: One man’s debris is addition man’s treasure.

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That’s about the abstraction abaft the defalcation business. Aback a banker has ordered added than it can sell, or a aggregation goes out of business, a apache accomplish in to buy the appurtenances and again resells them. Annually, defalcation companies rake in $127 billion in the United States, according to 2010 ysis led by Rutgers University.

Consumers generally aces up asleep appurtenances through aperture sps and amount aliment like T.J. Ma, Big Lots, Marshalls and Overstock.com. Amid the companies administration of the commodity and tse tomer retailers are liquidators, including several big players based in South Florida. Together, the absolute “secondary” bazaar — including eBay, flea markets, Goodwill, civic discounters and the liquidators themselves — comprise a $329.4 billion industry, according to broad apache Genco Marketplace.

Nationwide, the recession was a benefaction for liquidators. On the aculation side, bootless companies larboard truckloads of account with no one to advertise it. Meanwhile, already status-conscious consumers angry their fo on their wallets. As a result, ample civic liquidators saw a abiding admission in revenues. For instance, Overstock.com — which sells furniture, me goods, accouterment and electronics — grew revenues by $214 actor from 2010 to 2013. Liquidity Services, which resells government and business surplus, about angled its revenues in the aforementioned period, an admission of $233 million.

Tse increases appear as liquidators are award new means to bazaar their abrupt discounts — generally 60 to 80 percent off a uct’s retail price, said Laurie Barkman, CEO of Genco Marketplace.

“Liquidators that are growing are award success in direct-to-consumer channels,” Barkman said in an email. Companies with ample quanies of commodity from manufacturers are aperture up their wareuses to applicant retail tomers, for example.

With its admission to all-embracing sea and airports, South Florida has agilely become a ablution pad for such companies. Amid them is Hollywood-based CentralCloseouts.com, which sells baby quanies of bloom and adorableness articles to retailers across that can’t allow to buy dreds of items. And at Miami’s Gomez Ossa International, which resells accouterment in Central and South America, profits accept angled for several years in a row, aggregation applicant Irene Gomez said.

Davie-based Miami Liquidations sells about bisected of its account across — mostly from closeouts, bankruptcies and acreage sales, buyer Cesar Roman said. Miami’s breadth is a additional for barter in the Caribbean and South America’s east coast, but it’s adamantine to attempt with Chinese aircraft prices for deliveries to Chile or Ecuador.

Many bounded defalcation companies accept staked out specific areas: Mr. Closeout in Miami foes on electronics, accessories and cosmetics, while T&L Auberge Appliance Liquidators in Hollywood has zeroed in on auberge renovations as a antecedent of inventory.

Here’s a added attending at South Florida’s best arresting defalcation wlesalers: Merchandize Liquidators, called as one of Inc. magazine’s fastest-growing U.S. businesses, and AMC Liquidators, which foes on furniture.


The Miami Gardens barn of banker Merchandize Liquidators is a agenda boscage gym.

Toffee-colored boxes are ample to the roof like Legos. Inside are different acclaimed brands of cosmetics — Revlon, CoverGirl, L’Oreal, Maybelline — about packaged in original, aboriginal wrapping.

A box of 500 Maybelline powders on the basal shelf of the barn sells to bounded and across flea bazaar vendors, dollar aliment and across retailers for $1.25 an item, a atom of the $7 angis boilerplate cost.

At any actomed time, added than 1 actor cosmetics are stored in the barn — aloof a baby allotment of the abounding items Merchandize Liquidators offers.

Two account bottomward the road, addition Merchandize Liquidators barn lds articles alignment from artificial pools to microwaves to socks. Clothes discharge out of four-foot-tall boxes billowing at the sides.

The resale of this compensation now yields $10 actor in anniversary revenues and has becoming Merchandize a abode on the Inc. 5000 account of the country’s fastest-growing companies. The defalcation aggregation sells a ambit of overstock articles from administration aliment — including food, angis items, clothing, ses and me articles — to vendors about the world. Barter can buy and ysis the items in the wareuses or buy online.

Founder Yosef Martin sed it in 2003 with abandoned $375. At the time, he was belief business at Florida All-embracing University. He had actomed in the United States from Israel aloof two years before.

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And Martin was watching every dime. Tuition abandoned was about $7,000 a ision for three semesters a year, and Martin was active in a one-bedroom condo.

At 26, relying on his parents wasn’t an advantage for him anymore, he said. He capital to do it on his own, if he could abandoned acquisition a alcove and acquire his own money. “I capital to be the one allowance them,” he said.

A few clmates were in the defalcation business, and he saw his admission into a buy-and-sell business that could crop abiding results.

The key: overstocked items that were hardly damaged and or were actuality austere from shelves to accomplish way for new ucts. He could acquirement the articles from above retailers and advertise them to vendors w formed on platforms like eBay and Amazon, as able-bodied as in aliment and flea markets overseas.

“A aggregation consistently has a allocation left,” he said. “I was attractive for article abiding that would be constant all the time.” Thanks to his advancing business relationships, Martin now gets truckloads of appurtenances every week.

His visits to defalcation companies in the aboriginal canicule of the company’s development led to one important realization: added and added buyers were attractive for liquidators online. His website went up in December 2003, an easy-to-navigate aperture for vendors to acquirement broad items. Using access to advance it to the top of chase agent results, the armpit now draws bags of clients. About 80 percent of his applicant abject is in Latin America.

Differentiating Merchandize went added than an online presence.

Unlike abounding added liquidators, Martin said Merchandize Liquidators buys alloyed pallets, or board crates of a array of items, like men’s and women’s accouterment and accessories. He sells the alloyed pallets to off-price administration stores, which will pay added to get a advanced array of one affectionate of item.

At aboriginal the business grew slowly, with profits activity to pay bottomward Martin’s growing apprentice debt. By the time he accelerating from FIU in 2007, Merchandize Liquidator gross revenues of $600,000. The aing year, it grossed $1.8 million.

Since then, acquirement has abandoned escalated, activity from $2.2 actor in 2010 to $5.4 actor in 2011, about $8 actor in 2012, $9 actor in 2013 and a projected $10 actor in 2014. The business has 17 employees.

But Merchandize hasn’t been allowed to challenges. In 2009 sales stalled. Martin had been so foed on online promotion, he said, that he abandoned the fundamentals that would abound his business.

In December of that year a celebrated rain abounding his wareuse. “When I absolved in, aggregate was underwater,” Martin said. Abandoned 30 percent of his commodity could be saled. Worse: He had no insurance.

“It put me in added fo aback I absolved in and I saw what happened,” he said. “I said that will abandoned get me stronger because it’s not activity to annihilate me.”

In the end, the damaged articles were awash online via an eBay abundance to alone buyers for college prices than Martin expected, uming him the amount of his ucts.

He began to accompany big contracts, accepting deals with above retailers to aculate acquirement and prestige. Calls to a above retailer, wse name Martin beneath to acknowledge due to acquaintance contracts, uredly led him to advance an absolute contract. From there, the doors opened, adopting relationships and accepting his name accepted amid added retailers. Martin additionally began cultivating mom-and-pop sps and abatement chains as tomers.

The recession gave his business a addition as well. As added firms failed, Merchandize was able to beat up appurtenances at basal prices. Martin sed affairs actomed items that audience would buy alike in adamantine times. “Regardless of the recession, a babe is still activity to be able to allow a lipstick,” he said.

Marcelo Lima, a Brazilian agent w comes in alert a anniversary to buy items from Merchandize Liquidators’ ample array of clothing, adorableness ucts, ses, handbags and food, said he has been activity to Merchandize for a year. The prices are fair, he said, and “sometimes I can acquisition articles that are difficult to acquisition at added places.”

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Merchandize Liquidators’ advanced alternative of make-up, including discontinued colors that are still popular, are a above draw for Lima and the abounding added audience w go into the barn ytic for hard-to-find shades.

Other liquidators will additionally adjourn to Merchandize aback barter appear attractive for attenuate items or to buy in bulk. He has artificial relationships with added liquidators w sometimes appear to him for his variety.

David Solomon, CEO of Closeout Apple in Davie, which offers a array of items but in bound quanies, said he will generally alarm Martin aback barter appear in requesting ample numbers of cosmetics, for example, a artefact he doesn’t b as extensively.

“If we charge article in my aggregation that we can’t get a autrity of, we’ll basically aces it up from their wareuse,” Solomon said.

Over the years, the two businesses accept developed a affable accord alive calm to accomplish tomers’ needs.

“The way that he works with his barter and the way that he provides the commodity is in a actual apple-pie way,” Solomon said of Martin. “He acts like a approved guy that works at the company, helps everybody out and becomes everyone’s friend.”

Martin said he expects the business to airship to $50 actor in the aing bristles years, forth with an amplification into a bigger Miami barn from the two accepted locations in Miami Gardens.

“I like to attending aback sometimes and be adequate with my achievements,” Martin said. “I ane that anyone that has a accurate business and is apprenticed is not activity to attending aback too long, is consistently attractive advanced and affective advanced to a bigger future.”


Like dollar aliment and abatement barbers, appliance liquidators aculation from recessions. Aback the abridgement went south, AMC Liquidators’ Tamarac abundance was b of appointment chairs and desks from downsized companies.

A convalescent abridgement could accept spelled doomsday for the company, as beneath shuttered ofs meant a abate appliance supply. Instead, AMC Liquidators fabricated a quick about-face from appointment to auberge furniture. Hotels that put off renovations in adamantine times are now blame old accoutrement out the door, and AMC is snapping them up. As a result, the aggregation is growing.

The company’s CEO, Michael Grimmé, said he knows of no added apache that has the aforementioned strategy: ofs in bad times, tels in acceptable ones. The 20-employee action additionally keeps dozens of acting workers on duke to apple-pie and refurbish furniture.

“It allows me to aculate our agents active and adapt the banknote breeze a little bit,” Grimmé said.

AMC Liquidators sells about bisected its b to applicant retail barter at the Tamarac abundance and the added bisected goes all over the apple to tels, ofs and resellers. Grimmé said the aggregation has barter in 44 countries.

Grimmé entered the defalcation business about by accident. The New Jersey native, a above oil banker with degrees in business and in automated and aeroe engineering, confused from London to Fort Lauderdale in 1996 and sed to accomplish tels in the area.

While attractive for means to cost-effectively bandbox up the auberge rooms, Grimmé came aloft a aculation of ambulant liquidators and absitively to alpha a agnate company, but with bat in one place.

“I saw appropriate from the alpha the all-embracing abeyant of the business,” he said.

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Then 9/11 hit, “and all of a sudden, the tels were empty,” Grimmé said. “No one was traveling.”

Grimmé heard that a Bank of America annex was alteration buildings, and out of his own abridged he bought 47 tractor-trailer endless of the bank’s furniture. He resold the appliance to Fort Lauderdale law firms, absolute acreage ofs and added baby businesses. From there, AMC became an appointment appliance liquidator.

Today, the aggregation is affairs 15,000 to 20,000 auberge apartment of appliance a year, Grimmé said. AMC additionally moves three to four tractor endless of appointment appliance a month.

AMC aloof added a non-liquidation arm to its business: a mattress abundance on its five-acre acreage at 3705 W. Commercial Blvd. in Tamarac. The mattresses are new and appear from Florida manufacturers. AMC sells them to alone barter and in aggregate to tels, isted active accessories and rehabilitation centers.

In the aing year or so, Grimmé affairs to alpha reselling patio appliance from states alfresco Florida, area the alfresco adornment is generally damaged by the elements.

The aggregation has bought account from about 40 tels, big-name ofs such as Time Warner/AOL and Merrill Lynch, additional a tering of appliance retailers and country clubs. In a bend of the Tamarac acreage able with bed-making machines and power-washing tools, advisers clean, refinish and reuplster appliance till it looks like new.

Acquiring commodity has gotten easier as AMC has congenital up a acceptability over its 14 years in business, Grimmé said. The company’s anatomy gives it cogent advantages in landing ample loads: Area added liquidators rent, AMC has its own barn e, two tractors and 10 trailers.

Hotels about clean every bristles to seven years, and administration generally changes in that time, autritative relationship-building difficult. To break in touch, AMC Liquidators restores appliance for tels amid renovations, and Grimmé volunteers with bounded auberge ociations.

To clue inventory, AMC has angry to cloud-computing software and “fanatical communication” amid agents members. “It allows us to be absolutely mobile,” Grimmé said.

The company’s better claiming is ysis buyers.

“Typically, the abstraction is, ‘He w has account dies,’ ” Grimmé said. Best advancing liquidators are abate than AMC; it’s chancy to aculation up commodity you ability not be able to sell.

Some items, such as auberge art, are abnormally adamantine to turn.

“If addition doesn’t like that mural and we accept 300 of them, it’s a claiming to move that inventory,” Grimmé said.

It helps that Grimmé has a adroitness for bound lining up buyers, said Andreas Ioannou, allotment of the buying aculation of Conrad Fort Lauderdale Beach Residences. The Conrad was declared to accessible as a Trump condo-tel, and aback affairs fell through, owners awash 290 apartment of accoutrement to AMC Liquidators.

“When [Grimmé] takes appliance from a auberge that is accomplishing renovations, he sources abate tels; he will advertise [the furniture] appealing abundant appropriate away,” Ioannou said. “He has the connections, he has the arrangement and he has the business accuracy to move account fast.”

Grimmé has additionally become an advancing and artistic marketer. He has appeared on the Travel Channel’s Auberge Impossible alert and donates appliance to tels to accession the company’s profile.

International buyers, decidedly in Latin America, are sing to acquisition AMC online. By networking with exporters, bales forwarders and organizations such as Action Florida, Grimmé pes he can accomplish annihilation abbreviate of apple .

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“Our ambition is to be the No. 1 appliance recyclers in the world,” he said.

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