Rug Firm Settles Suit Over Liquidation Sale

At Tala Oriental Rugs in Camarillo, the countdown sale to the final liquidation never ended--it just kept starting over again.

That is until area consumers and the Ventura County district attorney’s office noticed newspaper advertisements that kept proclaiming new countdown dates and sued.

The district attorney’s office settled the lawsuit Tuesday against Ventura Rug Gallery Inc., the company that was doing business as Tala Oriental Rugs at a store in Camarillo and three in Los Angeles County. The firm is no longer in business.

Without admitting wrongdoing, Ventura Rug Gallery agreed to pay $50,000 in civil penalties--$25,000 to Ventura County and the other $25,000 to Los Angeles County. The lawsuit was based on violations of California’s false advertising and unfair business practices laws.

“The 11-day countdown started Jan. 11 and went to the final day of Jan. 21, and then a couple days after the purported final day, they started the countdown again,” Deputy Dist. Atty. Patricia Malone said.

“The individuals involved are known as professional facilitators or liquidators,” Malone said. “They travel from city to city opening stores just to close them. . . . It’s unfair to legitimate Oriental rug dealers and to consumers who think they’re getting a good deal.”

The attorney representing Ventura Rug Gallery, Tom Campbell, could not be reached for comment.