Is all a good buy ?

Little secrets of 'out-of-business' sales

Do 'closeout' sales mean the lowest prices? Not always. And where did all that extra merchandise come from?

NEW YORK (CNNMoney.com) -- They're seen as either big-time bargains or big-time scams. What really goes on at a "going-out-of-business" sale is something in between, according to experts.

"Consumers think this is the time for bargains. That's not true," said George Whalin, president and CEO of Retail Management Consultants.

Thousands of retail stores are expected to disappear in 2009. But most big chains don't run those out-of-business sales themselves - Linens 'N Things, Whitehall Jewelers and, most recently, Circuit City, all hired liquidation firms to handle the process for them.

The liquidator buys the merchant's inventory and sets final clearance sales. They guarantee the store's creditors a payment upfront, and need to sell enough merchandise to recoup money for themselves.