I dont know if this will delete the locations but it will get rid of all the records so you can delete them in maintain database
 
If you figure it out be sure to post how to do it I need this too
 
JW
 
UT-K-E
Purpose of Program
 
Use this program to consolidate all your inventory Location data into a single new Location for each inventory item.  Generally this program is used in two situations.  First, only one Location is used at a company, yet it was set up with an actual name rather than with a blank name, causing unnecessary data entry in various programs.  In this case UT-K-E can serve to transfer all the Location data from the named Location to the blank Location.
 
The second use is where a company starts out setting up multiple Locations (see How to Use Multiple Locations), then decides to change its setup scheme or naming scheme and wants to start over with a single, clean Location.
The program deletes all location records in the Location file (BKICLOC) for all inventory items, then creates a new master Location record that updates the Location with the aggregate stock status counts for each inventory record.
 
General Program Operation
 
MAKE A BACKUP FIRST.  This is a utility program that will affect many data records.  With a backup you can always restore the data if for any reason the program does not produce the desired results.
GET EVERYONE OFF THE SYSTEM: Get all users off the system before running this program.      
First you are given a warning as to what the program does and then you are asked to confirm if you want to proceed.
Enter the name of the main Location that you want to be the new single Location.  After entering the Location name the program will begin processing.

I have found a time consuming, yet risky way of doing this.  But it requires getting into the Maintain Database and deleting records from BKICLOC and BKICLOCM.  
 
Along those same lines, how do you change the default location from "blank" to have a name?

I have used the utility that Lynn is talking about. It works great, be sure you understand what you are doing. Once you consolidate the transactions you can delete the location in Maintain database.