As a business owner: if something is being liquidated, the shop owner needs to get rid of the stuff, you're doing him/her a favor if you buy.

Is this LBS in a mall or mini mall? If so you may want to complain to he mall's management company. Several years ago the same happened to a great pet store we do business with - one of the few pet stores that actually cares about animals. So many people called the mall management to say something along the lines of, "I only shop at your mall because of that pet store..." that they got a deal on the rent and managed to stay open.