Liquidation World Inc. reported un-audited consolidated earnings results for the third quarter and nine months ended July 5, 2009. For the third quarter, revenue decreased 15.4% to CAD 37.0 million from CAD 43.8 million in third quarter of 2008. Same store sales in the quarter decreased 9.3% from third quarter 2008. The company recorded a net loss from continuing operations and net loss and comprehensive loss of CAD 5.5 million or CAD 0.34 basic and diluted loss per share versus a net loss from continuing operations and net loss and comprehensive loss of CAD 3.8 million or CAD 0.46 basic and diluted loss per share during third quarter 2008. A significant part of the third quarter, 2009 losses relate to the company's restructuring activities as well as its mandate to reposition stores. Cash provided by operating activities was CAD 3.480 million compared to CAD 6.830 million of previous year period. Purchase of capital assets was CAD 0.263 million against CAD 0.095 million for the same period last year. For the nine months ended July 5, revenue declined by 11.9% to CAD 122.2 million from CAD 138.8 million during the same period in fiscal 2008, and same store sales declined 5.2%. During the first three quarters of the fiscal year, the company recorded a net loss from continuing operations and net loss and comprehensive loss of CAD 14.2 million or CAD 1.14 basic and diluted loss per share versus a net loss from continuing operations and net loss and comprehensive loss of CAD 7.2 million or CAD 0.87 basic and diluted loss per share during the same period last year. Cash provided by operating activities was CAD 8.887 million compared to CAD 2.414 million of previous year period. Purchase of capital assets was CAD 0.745 million against CAD 1.077 million for the same period last year.

Liquidation World Inc. announced that it has reached an agreement with its lender to amend its existing loan agreement. The amendment includes a modification to certain financial covenants. With the amendments now in place, the Company becomes compliant with all of the new financial covenants on a current and retrospective basis. Management anticipates, based on latest forecasts, that the Company will be in compliance with the new terms of the lending agreement through fiscal 2010. Amendments to the lending facility include an increase in interest charged on amounts drawn to prime plus 5%; a reduction in the minimum tangible net worth covenant; a delay in the requirement for the Company to comply with a fixed charge covenant ratio to June 30, 2010; and the addition of a minimum quarterly EBITDA requirement.

Liquidation World Inc. has appointed Daniel Ardila, to the position of Chief Financial Officer & Senior Executive Vice President Finance, subject to regulatory approval. Mr. Ardila will fill the roles previously performed by Ken Wightman, who will continue with the company for a limited time to ensure an effective transition. Mr. Ardila joins Liquidation World from 6N Silicon Inc., and prior to that was Vice President and Chief Financial Officer at Algoma Steel Inc.