Liquidating Assets
When businesses are no longer financially viable, the owners may decide to file for commercial bankruptcy in order to repay debts they owe and try to manage the financial burdens facing their business. Commercial bankruptcies are typically handled by reorganization or liquidation. Liquidation means that any assets the company has may be sold in order to repay some or all of the debt owed.
Liquidation is often performed as a sale or auction as the company tries to sell its assets as quickly as possible. If you are a business owner and are considering filing for commercial bankruptcy, contact the Boston bankruptcy lawyers of Joshua Spirn & Associates at 800-975-5346.
Common Methods of Liquidation
For commercial enterprises that deal with consumer goods, liquidation is often performed in the following ways:
- Retail sales – retailers will often advertise “going out of business” sales and attempt to liquidate assets by selling the merchandise at discounted prices
- Negotiated sales – when time is of the essence, businesses may choose to negotiate the sale of merchandise to competitors and other businesses
- Consignment sales – businesses may choose to sell the merchandise through a similar store on “consignment” and shut the doors on their own business
- Internet sales- an increasingly popular option for many businesses facing bankruptcy is to place their merchandise on sale through internet outlets
- Auctions – merchandise is sold to the highest bidder, at possibly deep discounts
Contact Us
During times of serious financial crisis, business owners must often make difficult decisions regarding the future of their enterprise. If you are considering filing for commercial bankruptcy, contact the Boston commercial bankruptcy attorneys of Joshua Spirn & Associates at 800-975-5346 today.
