Krause's has retained Encino, CA-based Buxbaum Group to manage the liquidation process. Going-out-of-business sales already are under way at a remaining 43 locations in California, Washington, Arizona, Colorado, New York and New Jersey. The sales include inventories from 14 shuttered stores. The merchandise, which is worth $22.5 million at retail cost, will be sold at a minimum discount of 40%.

These liquidations mark the final stage of store closings for Krause's. The company, which manufactures and retails made-to-order furniture and accessories, already has conducted sales at 22 Krause's Custom Crafted Furniture sites and three Castro Convertibles locations.

When Krause's filed bankruptcy in July, it received debtor-in-possession financing designed to support operations through Sept. 30. The court stipulated that if a sale of Krause's assets was not completed by that date, the company would have to liquidate inventories and cease operations.