Liquidating business definition
In this case, a receiver may be required to file a final statement accounting for the distributed and remaining business assets and expenses of liquidation in order to receive a final settlement order from the receivership court.
This is sometimes difficult to do and requires early arrangements.Liquidation is the selling of the assets of a business, paying bills and dividing the remainder among shareholders, partners or other investors. Upon liquidation of certain business, such as a bank, a bond may be required to be posted to assure the proper distribution of assets to creditors.A receiver may be appointed to oversee such distribution of assets.Alongside appraisers are liquidators specializing in selling inventory and equipment; a variety of selling techniques are used, including auctions. For example, all the inventory may be moved to an empty warehouse and laid out for a sale that might extend over several days.Some liquidators have added Internet outlets to their marketing and therefore a photographer may be taking digital shots of selected items as part of inventory.