Oakton Liquidation Sale....Everything Must Go!
The inventory, furniture, fixtures, office equipment, and computers of Oakton and sister divisions, Independent Appliance Distributors and Ultra 8 are being liquidated to pay off creditors. The majority of the inventory is located in Des Plaines Illinois, while $ millions in dishwashers are at Ultra 8's warehouse in Las Vegas. The liquidators are energetically entertaining manufacturer bulk buy backs of stock, distributor and dealer purchases and consumer walk-ins.
In the liquidation business, whether appliances or of the Soprano variety......there are no rules.
UPDATE Aug 20: Exclusive Attorneys representing Oakton and Ultra 8 are pursuing some of Oakton's dealers and some of Ultra 8's/Ariston's other distributors in USA and Canada. To add displaying dealers, Oakton was known to employ highly attractive payment terms including 9 month, 12 month, in fact up to and including Consignment (pay when sold).
Some dealers have these special terms documented on their invoices. Other dealers are claiming these terms based on a Verbal promise from Oakton and these are the dealers the attorneys are focused on.
We have no information as to the claim or foundation for the legal pursuit of some of Ariston's distributors, but we continue to look.
UPDATE Aug 22: Exclusive Sources tell us that Ultra 8's Oakton-based management did in fact shower distributors with extended payment terms including Consignment!!!! INCLUDING CONSIGNMENT!!!!! Some of said terms were given verbally (with witnesses). How do you sell inventory for consignment? Display units sold to dealers on consignment we understand....but INVENTORY!!!!! AHHHHH!!
Are there accounting issues in the recognition of revenue involved here, negative cash flow issues, lipstick on a pig issues in tarting up the sales numbers in sales reports to Ariston Italy? Why would you ship truck loads of product to distributors who had no financial commitment to selling them? That said, it may be difficult to squeeze distributors to pay for inventory taken on consignment, though it may be possible to get the product itself back.

