- Declaring Liquidity Services (NASDAQ:LQDT) has failed to comply with deal provisions related to service level requirements and restrictions on the disposing of merchandise, Wal-Mart has terminated an agreement through which Liquidity bought closeouts, customer returns, and excess merchandise for resale. (8-K)
- Liquidity disputes Wal-Mart's allegations, and is "evaluating all of its options" for contesting the deal's termination.
- The company insists Wal-Mart's move won't prevent it from hitting its FQ1 guidance. However, Janney notes Wal-Mart accounted for 11% of FY14 (ended Sep. '14) GMV, and thus expects estimate cuts.
- Separately, Liquidity announces the DoD has granted it a two-month extension for its surplus property sale contract.