Liquidate or liquidation or liquidating

Posted by / 11-Jun-2018 18:40

Liquidate or liquidation or liquidating

After these steps have been carried out, the company is formally dissolved.

The law classifies liquidations into two types: voluntary (which is by a shareholders' resolution) or compulsory (by a court order).

A business could liquidate most or all of its inventory as part of a move to a new location, thereby saving money on having to transport all of it to a new storefront.

It is not necessary to make any application to the court for this; however, the liquidator may apply to the court for directions and the court has power to remove a liquidator.

These businesses may buy a company’s entire inventory, or assets, and then sell them to other retailers.

Some liquidators are retailers, too, such as Big Lots, Tuesday Morning, and Ollie’s.

Liquidation (or "winding up") is a process by which a company's existence is brought to an end.

First, a liquidator is appointed, either by the shareholders or the court.

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These companies buy leftover inventory for a fraction of their retail value and then resell the goods in their own stores, generally for less than the full retail value, but more than they paid for them.