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The Honolulu Advertiser
Posted on: Saturday, November 25, 2006

'Controlled chaos' at Ashley sale

By Lynda Arakawa
Advertiser Staff Writer

Hundreds of people lined up outside the closed doors of Ashley Furniture Homestore in Waikele yesterday, eager to get inside for the liquidation sale of 30 percent off the lowest ticketed price.

Photos by BRUCE ASATO | The Honolulu Advertiser

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Some customers arrived as early as 6 a.m. yesterday for the sale, which continues through this weekend and from Wednesday through Dec. 3. McClain Auctions is handling the liquidation.

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Ashley Furniture Homestore's liquidation sale yesterday drew hundreds of people, including shoppers seeking a bargain and frustrated customers who hadn't received the furniture they purchased earlier.

The liquidation sale was the first of a handful scheduled within the next week following Ashley Furniture's abrupt closure Nov. 10. The company angered some customers when it said some, but not necessarily all, would receive refunds for purchases of furniture that couldn't be delivered. Instead, certain customers awaiting orders were promised store credit to purchase merchandise remaining in the store.

Some customers arrived at the Waikele store as early as 6 a.m. By noon — just before doors opened to the first group of customers — a line of about 400 people snaked around the parking lot as a dozen police officers monitored the crowd. Tensions rose at times, with some customers pushing toward the door while a security officer yelled at people to keep order "so no one gets hurt." Some customers argued over who should be allowed to enter the store first.

"It was crazy," said Waimanalo resident Hannah Pahia, who had waited in line since 9 a.m. to get $4,000 worth of furniture that her mother-in-law ordered but never received. "We were by the front door and people were yelling and screaming at each other."

Pahia left the store happy, however. She was able to find most of the furniture her mother-in-law wanted, and the remaining amount would be taken care of by the credit card company, she said.

McClain Auctions, which is handling the liquidation of about $2.5 million worth of inventory, initially let in about 150 people shortly after noon and eventually allowed larger groups in at a time, said owner Marty McClain.

"It was controlled chaos," he said. "But everybody cooperated, everybody behaved themselves. ... We had to tell them several times to calm down."

The sale — which offers 30 percent off the lowest price tag — will continue through this weekend and from Wednesday through Dec. 3, McClain said. Whatever merchandise that remains after the sale — as well as Ashley Furniture equipment like office computers and copy machines — will be up for auction before the end of the year, he said.

McClain provided customers state Office of Consumer Protection complaint forms, as well as cash refund request forms from local Ashley attorneys. By 1:30 p.m. more than 100 complaint forms were given out, he said. McClain said about 250 customers who paid cash but hadn't received furniture they ordered entered the store earlier this week by appointment, but many decided to retain their claim against the store rather than pick up merchandise.

McClain said over the last eight days he received more than 3,000 calls and about 800 e-mails, mainly from customers who didn't get merchandise they purchased and those who had customer service questions.

Proceeds from the liquidation sale will be used primarily to pay Ashley lender GE Commercial Finance Corp. The lender essentially owns the store's inventory because it was used as collateral for loans to Ashley.

'Ewa resident Tyray Daniels, 36, waited about three hours before he was allowed in the store. He was hoping to find a bed set to make up for the one he purchased in September for $400 but never received.

"I just want to pick out something," he said. "Of course, it's frustrating. Why should I have to come here and hunt them down to get my stuff and try to (go) through the proceedings ... just to try to get something I paid for? I don't know what to say. It's a raw deal."

Owners of Ashley Furniture store have said Hawai'i's softening housing market, as well as a rise in interest rates, gasoline prices and military deployments, contributed to the store's financial difficulties and the closing of the locally-owned, 4-year-old store.

Before the doors opened, Kane'ohe resident Ernest Taniguchi borrowed McClain's microphone system and urged customers in line who had not received furniture they ordered to file a complaint with the Office of Consumer Protection. Taniguchi later said in an interview that he never received $2,200 worth of furniture he bought in August and that he will file a complaint.

"We have more strength in numbers," he said. "We need to organize."

Reach Lynda Arakawa at larakawa@honoluluadvertiser.com.