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Translate files Liquidation
/ˌlɪk.wɪˈdeɪ.ʃən/
Meaning & Definition
noun
The process of selling off assets to pay creditors in order to settle debts.
The company's liquidation was necessary to settle its outstanding debts.
The conversion of assets into cash.
During the liquidation, all inventory items were sold at significantly reduced prices.
The act of closing a business and distributing its assets.
After years of losses, the owners opted for liquidation and held an auction to sell all their equipment.
The process of winding up a company’s financial affairs.
The liquidation of the corporation was managed by an appointed receiver.
In finance, the process of making a business or asset easily convertible into cash.
Investors prefer liquid assets since they can be quickly converted to cash during liquidation.
Etymology
Late Latin liquidatio, from liquidare 'to make liquid'.
Common Phrases and Expressions
going into liquidation
The process by which a company is closed and its assets sold off.
liquidation sale
A sale of merchandise at reduced prices due to the closing of a business.
forced liquidation
Liquidation that occurs due to legal obligations or creditor demands.
Related Words
bankruptcy
A legal status of a person or entity that cannot repay the debts it owes to creditors.
assets
Items of value owned by a company or individual.
creditor
A person or company to whom money is owed.
Slang Meanings
Going bust
After years of losses, the business is going bust and will have to liquidate.
Clear out
They're clearing out the store before liquidation.