"Potentially, 10% of retailers could face significant restructuring, bankruptcy or liquidation" in 2009, said Colin McGranahan, a retail analyst at Sanford C. Bernstein & Co.

Liquidation sales are an especially potent draw during the current recession, when cash-strapped consumers are seeking the biggest bang for their buck. But bargain hunters may not realize that products aren't always cheaper at a liquidation. Indeed, prices can even be higher than at competing stores.

Liquidations are conducted by outside specialists who assume control of the stores. The liquidators profit only if they get the highest price for merchandise. Far from offering deep discounts, prices can sometimes even climb in a liquidation sale, particularly at the outset, as liquidators count on consumers' assumption that they're getting a good deal.

Dan de Granpre, chief executive of Dealnews.com, a Web site that analyzes bargains, observed that in the early days of the Linens 'n Things liquidation, shoppers were paying higher prices than previously offered at the chain. Much of the stores' merchandise was marked down 10% to 15%. Before the liquidation, the retailer routinely gave out 20%-off coupons.

Liquidators say they take a chance when they agree to take over a retailer's merchandise.

"The liquidator tends to take a bad rap," said Richard L. Kaye, executive vice president of Hilco Organization, one of a handful of large U.S. liquidation companies. "But there is a lot of risk involved and a significant science. The outcome doesn't benefit the liquidator as much as the creditor-lenders and suppliers."

Liquidators typically assume responsibility for a retailer's leases, payroll and other costs. They agree either to take a percentage of what they sell, or agree in advance to pay the company or its creditors a percentage of the wholesale value of the inventory, gambling they will be able to unload the merchandise at prices that will generate a solid profit.

To liquidate as much as possible, including store fixtures, a going-out-of-business sale typically takes six weeks to three months. But liquidators sometimes augment sales by bringing in new merchandise, or by adding leftovers from previous liquidations. "We want to get the most buck for the bang," said Mr. Kaye of Hilco, which is one of the liquidators involved with Circuit City and Linens 'n Things stores, as well as some Mervyn's outlets.

That practice also can prolong the sale -- and the pain for competing retailers.

In a statement accompanying a recent warning that Bed Bath & Beyond's quarterly profit would fall below expectations, CEO Steven H.