DirectBuy closes in Springs after state allegations

July 8, 2011

The Colorado Department of Revenue on Thursday seized assets of the DirectBuy warehouse buying club in Colorado Springs after the agency said the retailer failed to pay $108,851 in sales and employee withholding tax dating to 2007.

The assets included a delivery truck, although it wasn't immediately known what other items were seized. The assets will be auctioned by the department at a later date — typically within 10 days— to pay the delinquent taxes, said Mark Couch, a department spokesman in Denver. DirectBuy operated at 4815 List Drive, off Centennial Boulevard on the city’s northwest side; its storefront was closed and locked Friday.

The seizure comes about a week after the warehouse reopened on List Drive. The company had to leave its previous location at 680 Garden of Gods Road after Wachovia Commercial Mortgage, owned by Wells Fargo & Co., foreclosed on a $1.53 million loan to DAB Holdings, a limited-liability company set up by DirectBuy franchisee Donnell Britton.

Wachovia agreed to sell the building to Appliance Factory Outlet, which moved its Colorado Springs store across Garden of the Gods Road last week to the former DirectBuy building.

Britton couldn’t be reached Friday for comment, but DirectBuy’s corporate office in Indiana issued a statement Friday “to express our apologies to any members who have been inconvenienced as a result of the club’s closing.”

The company said orders will be processed and delivered, and DirectBuy members awaiting merchandise will be contacted to arrange pickup or delivery to their homes.

The company said its members still can make purchases through its website — —  and can use DirectBuy’s Home Shopping service, which gives them access to representatives who can help find products, provide samples, get photos and pricing and order merchandise.

The statement thanked DirectBuy’s Colorado Springs-area members for their patience, and the company said it would “look into this situation.”

Call the writer at 636-0234.


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