Before hiring liquidators, here's what to know about
business shut down.
If your company is in trouble and the only way out is shut your
doors or to sell inventory, a business liquidators company might
make all the difference.
These organizations will come in and sell your inventory for you,
helping you to perhaps pay some bills, and come out cleaner than
if you simply walked away. Few companies have "going out of
business" sales themselves or close their doors without using
this type of a service. Some retailers have "liquidation" sales
and sell most of their inventory while continuing to stay in run.
There are several choices here for troubled business owners.
Business Liquidators Can Turn A Bad Situation Around
If you are thinking you must get out of your business before it
gets the best of you, you have several options. Some owners file
bankruptcy, while others try to sell their company. Although it's
more painful, it's easier to file bankruptcy than to find an actual
buyer for a troubled company. This is especially the case for smaller
firms.
Assuming there is no viable buyer, what do you do? You can hire
a business liquidators company to help you out. If you file a Chapter
7 bankruptcy, a liquidator will then sell your inventory to pay remaining
debts. On the other hand, you may want to just close your doors and
pay off your remaining debts. Here you would have a "liquidation" sale
to raise money. In either case, the business liquidator can run the
sale in a way you might never have thought of.
There are a myriad of these firms to choose from. It works something
like this (with variations depending on the business liquidators
company you are working with). You contact the liquidators and explain
your needs and goals. Many will require a minimum amount of inventory,
so you must be able to tell them the approximate size of what you
need to sell.
Once you sign a contract with liquidating firm they will set a date
and time for the start of the sale. Depending on your needs, the
sale might be a one-day bonanza, or could continue for several weeks.
Most companies offerring liquidating services will charge a small
percentage as their fee. For example, they may take ten percent of
the gross profits.
Most liquidators will not only run the sale for you but also will
provide signs, recommended price points, some staffing, and necessary
bookkeeping. Most will provide outdoor advertising as part of their
service, but ask that you plan and pay for newspaper and other ads.
Surprising
facts about
bankruptcy attorneys. Read vital factor #2 carefully.
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