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) December 1, 2009

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.

On December 1, 2009, the Board of Directors of Liquidity Services, Inc. (the “Company”) increased the size of the Board of Directors (the “Board”) from six directors to seven directors and appointed David A. Perdue, Jr. to the Board.

Mr. Perdue served as Chief Executive Officer of Dollar General Corporation, a retail organization, from April 2003 until his retirement in July 2007, and served as its Chairman of the Board from June 2003 until July 2007.  From July 2002 to March 2003, Mr. Perdue served as Chairman and Chief Executive Officer of Pillowtex Corporation, a textile manufacturing company.  Mr. Perdue has served on the boards of directors of Jo-Ann Stores, Inc., since 2008 and Alliant Energy Corporation, since 2001.  Mr. Perdue was not selected as a director pursuant to any arrangement or understanding and has no reportable transactions under Item 404(a) of Regulation S-K.

Mr. Perdue will serve on the Board’s Corporate Governance and Nominating Committee and Compensation Committee.

A press release announcing Mr. Perdue’s appointment as a director of the Company on December 1, 2009 is attached hereto as Exhibit 99.1.

Item 9.01.  Financial Statements and Exhibits

(d)  Exhibits

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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 Index

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Exhibit 99.1

Liquidity Services, Inc. Appoints David A. Perdue to Its Board of Directors

WASHINGTON – December 7, 2009 — Liquidity Services Inc. (LSI), a leading online auction marketplace for wholesale surplus and salvage assets, today announced the election of Mr. David A. Perdue to the Company’s Board of Directors effective December 1, 2009.

“David is a wonderful addition to LSI’s board,” said Bill Angrick, LSI’s Chairman and CEO. “His experience as a top executive and strategist within the retail and consumer goods manufacturing sectors will bring a valuable perspective to LSI as we expand our e-commerce marketplace solution in the US and abroad. Our Board and executive team look forward to working with David as we enter an exciting phase of our company’s growth and development.”

Mr. Perdue’s career spans over 30 years working within the retail and branded consumer product manufacturing industries in both domestic and international markets.

From June 2003 until July 2007, Mr. Perdue served as Chairman and Chief Executive Officer of Dollar General Corporation (NYSE: DG), a discount retailer of general merchandise with over $10 billion of annual revenues headquartered in Goodlettsville, TN. Mr. Perdue retired from Dollar General after repositioning the company for growth and leading a successful sale of the business to private equity firm, KKR.  From July 2002 to March 2003, Mr. Perdue was Chairman and Chief Executive Officer of Pillowtex Corporation, a textile manufacturing company located in Kannapolis, NC. Previously, Mr. Perdue held various positions with large consumer products companies including Executive Vice President of Reebok International and President and CEO of the Reebok brand, Vice President of Operations at Sara Lee Corporation (NYSE: SLE), and Senior Vice President of Asian Operations at Haggar Clothing. Earlier in his career, he worked in management consulting for Kurt Salmon Associates. Mr. Perdue earned a Bachelor’s degree in Industrial Engineering and a Master’s degree in Operations Research from the Georgia Institute of Technology.

With the addition of Mr. Perdue, the LSI Board will now consist of seven members.

About Liquidity Services Inc. (LQDT)

Liquidity Services, Inc. (NASDAQ:LQDT) and its subsidiaries enable retailers, manufacturers and government agencies to market and sell surplus assets quickly and conveniently using online auction marketplaces and value-added services. The company is based in Washington, D.C. and has approximately 700 employees. Additional information can be found at: www.liquidityservicesinc.com.

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Contact:

Julie Davis

202.558.6234

julie.davis@liquidityservicesinc.com