UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)  October 2, 2007

LIQUIDITY SERVICES, INC.
(Exact name of registrant as specified in its charter)

Registrant’s telephone number, including area code  (202) 467-6868

N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o           Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o          Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 5.02.             Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

(b)

Benjamin R. Brown, Chairman of the Technology Advisory Committee of Liquidity Services, Inc. (“LSI”) and Chief Technology Officer of Government Liquidation.com, LLC, is taking a sabbatical from LSI, effective January 1, 2008.

(c)

On October 2, 2007, Eric C. Dean was appointed Chief Information Officer (“CIO”) of LSI.  Mr. Dean, age 54, served as Senior Vice President and CIO for Schaller Anderson, Inc. from 2005 to 2007.  In this role, he oversaw the company’s IT activities as well as major development initiatives to support Medicaid plans and processing within nine managed care organizations.  From 2002 to 2005, Mr. Dean served as an independent consultant, providing advice and support to executives and management with responsibility for large IT projects.

Mr. Dean also previously served as CIO for Andersen Worldwide, one of the world’s largest international professional services firms, overseeing a diverse staff of 1,000 employees in six countries.  During his time there, Mr. Dean revitalized Andersen’s technological structures, particularly with the implementation of the Internet into the company’s knowledge-sharing environment.  Mr. Dean also previously served as CIO of UAL Corporation where he directed IT aspects of acquisition screening and integration planning and oversaw development and implementation of a variety of systems, including airport information systems, customer data warehouses, and major enhancements to the company’s transactional website.

In connection with his appointment as CIO, Mr. Dean entered into an employment agreement with LSI, which provides for an annual base salary of $250,000, the issuance of 250,000 shares of restricted Common Stock of the Company at an exercise price of $13.56 vesting over a four-year period, and eligibility to receive an annual bonus targeted at 50% of base salary. The foregoing description does not purport to be complete and is qualified in its entirety by reference to the employment agreement between Mr. Dean and LSI, which will be filed as an exhibit to LSI’s next periodic report or registration statement filed with the Securities and Exchange Commission.

The press release announcing this appointment is attached hereto as Exhibit 99.1.

Item 9.01.  Financial Statements and Exhibits.

(d)  Exhibits

99.1                                 Press Release, dated October 17, 2007.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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Exhibit 99.1

Liquidity Services, Inc Announces New Chief Information Officer, Eric C. Dean

WASHINGTON - October 17, 2007 — Liquidity Services, Inc. (LSI), a leading online auction marketplace for wholesale, surplus and salvage assets, today announced the appointment of Eric C. Dean to its executive management team as Chief Information Officer (CIO) of LSI and its subsidiaries.  Mr. Dean, 54, will lead LSI’s technology strategy and implementation in support of LSI’s continued growth. In this role, he will oversee LSI’s e-commerce platform, technology infrastructure and application development programs with a focus on meeting the business needs of LSI’s customers. Mr. Dean will also provide technical expertise and identify opportunities to drive efficiencies as LSI scales to a much larger enterprise.

Mr. Dean brings LSI over 28 years of experience in guiding the strategy, implementation and management of information technology processes in large scale, global enterprises and growth company environments, including roles as CIO of Schaller Anderson, Andersen Worldwide and UAL Corporation, parent company of United Airlines.

“Eric’s extensive knowledge and experience will play an integral role in LSI’s strategic direction, development and future growth,” said Bill Angrick, Chairman and CEO of LSI.  “As we continue to scale LSI’s online auction marketplace model organically and via acquisition, Eric’s proven track record of aligning technology with the business needs of a larger enterprise will contribute greatly to the success of LSI.”

Mr. Dean will succeed Benjamin R. Brown who, as previously indicated, is planning a sabbatical beginning January 1, 2008.

Prior to joining LSI, Mr. Dean served as Senior Vice President and CIO for Schaller Anderson, Inc.  In this role, he oversaw the company’s IT activities as well as major development initiatives to support Medicaid plans and processing within nine managed care organizations.  Mr. Dean also previously served as CIO for Andersen Worldwide, one of the world’s largest international professional services firms, overseeing a diverse staff of 1,000 employees in six countries.  During his time there, Mr. Dean revitalized Andersen’s technological structures, particularly with the implementation of the Internet into the company’s knowledge-sharing environment.

Mr. Dean also previously served as CIO of UAL Corporation where he directed IT aspects of acquisition screening and integration planning and oversaw development and implementation of a variety of systems, including airport information systems, customer data warehouses, and major enhancements to the company’s transactional website.

Mr. Dean has co-authored two publications about information technology and is a founding Chairman of the Liberty Alliance and the Arizona Health-e Connection Roadmap Technical Committee.  Mr. Dean holds a Bachelor of Science degree in Mathematics from Indiana University.

About Liquidity Services, Inc. (LQDT)
Liquidity Services, Inc. (NASDAQ:LQDT) and its subsidiaries enable corporations and government agencies to market and sell surplus assets and wholesale goods quickly and conveniently using online auction marketplaces and value-added services. The company is based in Washington, D.C. and has over 550 employees. Additional information can be found at: www.liquidityservicesinc.com.

Contact:

Julie Davis

202.558.6234

julie.davis@liquidityservicesinc.com