Liquidations

Liquidation is the process of selling a company's assets to pay off its debts, usually when it’s unable to meet financial obligations or ceases operations. This involves converting inventory, property, or equipment into cash. Once assets are sold, the proceeds are used to settle creditors’ claims in a specific legal order. After debts are paid or if assets aren’t sufficient, the company is formally closed. Liquidation can be voluntary, initiated by the company’s owners, or involuntary, through court action due to insolvency. It effectively terminates the company’s existence as a legal entity.