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FOR IMMEDIATE RELEASE
May 23, 2001
State Sues HomeBase Over 'Going Out of Business' Sales


SPOKANE - May 23, 2001 - The Attorney General's Office today asked a court to order the HomeBase home-improvement stores in Washington to close their doors and halt further going-out-of-business sales in Washington after May 29.

In a lawsuit filed in Spokane County Superior Court, the state alleges the chain violated the state's Going Out of Business Sales Act, which, among other things, limits the length of going-out-of business sales to 60 days.

HomeBase launched going-out-of-business sales at its nine Washington stores on March 29. Under state law, that means sales should cease on May 29, but reports in the media and statements to the Attorney General's Office indicate the company intends to continue them past the 60-day limit.

According to the state's complaint, the chain has already violated the Going Out of Business Sales Act by failing to notify county auditors of the going-out-of-business sales, failing to specify their starting and ending dates in advertising and failing to complete an "affidavit of inventory."

The affidavit of inventory, which is subject to review by regulators, is intended to ensure that new stock isn't ordered after a going-out-of-business sale begins.

In its lawsuit, the Attorney General's Office seeks an injunction barring further sales after May 29, as well as monetary damages and court costs. A hearing on a preliminary injunction is tentatively scheduled for Tuesday, May 29, in Spokane County Superior Court

HomeBase has outlets in Bellingham, Everett, Kirkland, Lacey, Renton, Silverdale, Spokane, Tacoma and Vancouver.

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