Wise Buys Discount Stores Set To Close, Employees Say

FOLSOM (CBS13) - Wise Buys, which is based here in the valley, popped up in 2008, but four years later, the store that promised deals for under $9.98 is apparently going under itself.

Customers and no doubt employees are upset as word spreads that the local bargain retailer is likely preparing to liquidate itself.

"I'm sad to see it go," one customer said while shopping Monday. "I like bargains."

While CBS13 tried numerous ways to get a comment from the company Monday, employees told us off camera that they've been notified all three Wise Buys locations - in Folsom, Roseville and Elk Grove - will shut down in the coming months, leaving upwards of 100 employees without a paycheck.

"I can't imagine they're closing," another customer said. "The place is busy all the time."

Without any comment from the company, the question remains what went wrong at this local chain?

"I can kind of see that they have a lot of inventory that sometimes it looks like it's not moving," one customer speculated.

Back in March CBS13 reported Wise Buys closed its Citrus Heights store after a prolonged dispute with its landlord over withholding rent.

A court evicted the company, ordering it to pay more than $100,000 in overdue rent and damages.

Sanjay Varshney, the dean of business at Sacramento State, says while the economy has been good to cheap retailers, there is just more competition.

"A lot of low-end stores have moved into the Sacramento region … and to survive, given the competition, is not easy," he said.

Again, we left many messages for Gary Cino, the head of Wise Buys, but got no response, and staff at the chain's office in Roseville said they couldn't comment.