Five Dollar Store outlets in the Spokane area are among a chain of 37 outlets in the Northwest that are being liquidated this month after an Illinois-based company bought the chain's assets and inventory in U.S. Bankruptcy Court.

Dollar Store's former owner, Liquidation Outlet Inc., of Puyallup, Wash., filed for Chapter 11 bankruptcy protection on March 25 in U.S. Bankruptcy Court, in Seattle. As part of its reorganization, Liquidation Outlet has sold all of its Dollar Store assets to Hilco Merchant Resources LLC, of Northbrook, Ill. That company, which does acquisition, disposition and lease restructuring as one of its business activities, now is holding liquidation sales of all Dollar Store merchandise, and store and warehouse fixtures and equipment, and is seeking new tenants for spaces the chain leased for its stores, Hilco says.

Paula Beville, manager of the Dollar Store at 804 W. Francis here, says Hilco plans to close the store and terminate its nine employees on June 30. Beville says a total of 350 Dollar Store employees will be out of work in Washington state.

Four other Dollar Store outlets here are at 10518 E. Sprague, in the former University City mall; at 15303 E. Sprague, in Spokane Valley; at 3204 E. 17th, on the South Hill; and at 4512 N. Market, in the Hillyard neighborhood. Those stores also are expected to close soon.

Aaron Lake, of Stejer Development LLC, of Spokane, is the leasing agent for the Francis Avenue property. He says, "I have had meetings with a couple of people looking at taking over that space. They are people we felt good about as co-tenants for our existing tenants. It's difficult finding someone capable of taking over 12,000 square feet."

Lake says he is aware of a chain comparable to Dollar Store that is looking at the real estate now held by Hilco Merchant for possible expansion.

The bankruptcy filing for Liquidation Outlet lists, among other debts, a $35,900 claim on a defaulted lease for the U-City store, and a $14,600 defaulted lease for the South Hill store.