Inventory Auction Planned at Former Adray’s Store

An auctioneer will attempt to sell off the remaining inventory of Adray’s CBS Premiums, the longtime Orange electronics merchant whose creditors forced it into bankruptcy court in December.

Tustin’s Credit Managers Assn. of California will conduct the auction, which will begin at 9 a.m. on Feb. 27 at Adray’s now-shuttered store on Chapman Avenue. The auction, which will include refrigerators, TVs, stereo systems, cameras and $30,000 worth of cigars, will probably take two days, said Charles Klaus, marketing specialist for Credit Managers.

Adray’s, a fixture in Orange County for 30 years, stunned customers in December by abruptly closing its doors at the peak of the holiday shopping season. The family-run business was a no-frills operation that was widely known for good deals on cameras and other items.

But in recent years, Adray’s faced increasing competition from national chains such as Good Guys and Circuit City stores, both of which operated nearby.

Shortly after Adray’s closure, creditors moved to force the retailer into bankruptcy. A trustee has since been appointed to handle the Chapter 7 liquidation.

Proceeds from the auction will first go to Adray’s largest creditor, Transamerica Commercial Finance Corp., which financed Adray’s inventory purchases and has a lien on the store site, said Scott Blakeley, an attorney for other creditors.

Also awaiting payment are Nikon Inc., Pentax Corp. and Tamron Industries Inc., three camera companies that claimed in their initial court filing that Adray’s owes them a total of about $396,000.