Among the first to go, two cases filled with laptop computer bags sold for $10 each at the Scooter Store auction Friday in New Braunfels.
Hundreds of people crowded inside the company's former corporate headquarters to bid on its massive office inventory.
"We're seeing what kind of items we can pick up," said Bess Kidd, the general manager of a local business.
Realtors Nancy and Tim Brown said they came in hopes of finding what the need for their new office in Schertz.
She said, "Our problem is we don't need large quantities."
The now drastically down-sized company remains in operation in New Braunfels with only a few hundred employees.
The once major supplier of power chairs for the mobility impaired allegedly over-billed Medicare and Medicaid and is now trying to re-pay millions as part of its bankruptcy.
Report: Scooter Store to cease operations
Meanwhile, the San Antonio Express-News cites a company statement in reporting that The Scooter Store plans to phase out operations and furlough its remaining 370 employees and managers.
The decision came from the New Braunfels, Texas-based company's board of directors.
The company said the U.S. Centers for Medicare and Medicaid Services notified it recently that the company is losing its federal contract for reimbursement of the sale of its products. That takes effect Oct. 26.
The company statement said the federal decision "effectively eliminates" its ability to sell its assets in a Chapter 11 reorganization, so it will liquidate.