Close-out sale replaces auction at Madelynn's
Wednesday, September 30, 2009
A liquidation sale has replaced a two-day auction that was scheduled this weekend to sell off stock at Madelynn’s, 511 Commercial St.
The start date of the liquidation sale will be released as soon as it is available, according to Vera Bothner, spokesperson.
“I think the liquidation sale will go on for a considerable period of time,” Bothner said in a telephone interview Tuesday afternoon. “As soon as there’s a plan on the liquidation sale, I will get that out to you.”
According to a news release, Madelynn’s and the Kansas Department of Revenue have reached an agreement for payment of back taxes through the sale of existing assets.
“According to the settlement agreement taxes owed are about $90,500 in sales tax and employment withholding of about $8,600, plus additional taxes on the liquidation sale,” the news release stated.
As part of the settlement, Madelynn’s has hired Redmond and Nazar LLP as counsel, Kerry Clark of Business Consultants as liquidation officer, and Bud Palmer Auction as liquidation agent.
In the news release, store owner Jean Woods said she was pleased with the resolution of the tax issue and its accompanying alternatives.
“We are pleased that the Department of Revenue is working with us so that we can close out our business through a sale, take care of customers, pay the taxes and do the right thing,” Woods is quoted as saying.
“Our other options, including bankruptcy, were not the right path for our customers or the companies we’ve worked with, and we are pleased through this agreement we can take care of both of these groups.”
Also in the news release, Woods apologized for the disruption caused by the tax issue.
“Brides and grooms and their families are going through such a special and already stressful time in their lives, and I feel so very badly that this has caused a great deal of stress in what should be a time of great happiness,” Woods said.
KDOR closed Madelynn’s on Sept. 3 for non-payment of sales and withholding taxes. Revenue department representatives worked in the store for several days that week to help customers who had made partial payments claim their dresses.
People who chose to apply for a refund of payments instead may call (316) 265-2249. More information should be available soon, the release stated.
Madelynn’s representatives are in the process of contacting people who had custom orders to make sure they have their dresses, Woods said.
People who had dresses on consignment may pick them up, with proper accompanying documents. Arrangements may be made by calling the number listed above, or at the store when it reopens for the liquidation sale. The phone number is 343-2040.
In addition to bridal gowns and bridesmaid dresses, Madelynn’s also has women’s clothing and accessories, including jewelry and gift items, and fine china, dishes, cookware and linens.
The store opened in 1996.