From Unclaimed Luggage Center's Instagram feed
No, they don't join your socks that disappear in the dryer. They're not stored in Area 47 at Roswell, NM. And they definitely cannot be claimed at the baggage window in the Twilight Zone.
It turns out that when luggage is left over in the hands of the airlines, either unclaimed or not identifiable (Remember: ALWAYS put your name, address and contact info inside the suitcase as well as on a tag!), it's shipped to the Unclaimed Luggage Center, a company in Scottsboro, AL, that has contracts with most major airlines. They get about 7000 items a day.
A crew of 150 open the suitcases, discard the unsellable/undonatable (open toiletries, underwear, etc.) and sort the rest out to be cleaned and put on sale. The store sends 20,000 garments a day to the dry cleaners! Some is sold in the store, and some donated to charity.
Store owners say that it's not just plain-jane clothing, either; they see kilts, wedding dresses, even a designer gown or two. Most is sold at 20-80% off the appraised price. including jewelry. If you're curious for more, click HERE or follow their Instagram feed, unclaimedbag.