Liquidation isn’t when a store floods full of water, but instead when a store’s assets are sold off for cash. Most of the time this happens when the store has an ‘everything must go sale’ right before a business or branch of the store might close.
Liquidation is all about creating enough cash to pay off any debts to creditors, and store assets that can create cash include store decorations, inventory, furniture, and office equipment. They can all be sold and turned into cash easily.
Pros and cons of liquidation
Sadly for most businesses, the selling of inventory often doesn’t bring in as much cash as normal. Since the inventory needs to be sold quickly, the prices are often dirt cheap and are targeted to be impulse bought at a price much lower than their value.
Liquidation is fast, and can often be beneficial when a business wants to simply change location or rebrand itself, but it often doesn’t earn the money that all the goods are worth.
The money is used to pay back creditors, employees, and those who have a financial interest or any loans in the business, such as leases for vehicles or storerooms.
Hiring a specialist
If the business either needs to be liquated quickly or has no idea how to start the liquidation process, certain specialists will help. They can buy the assets of the business for a cheaper price, and then sell the inventory to other stores and retailers. The stores can then sell the assets as their own for a profit.
Finding a store liquidation specialist is simple, and they will be able to answer questions, help to get the process started, and eventually turn all of a business’s assets into cold hard cash that will be able to pay off the debts and the employees.Read More →