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• Liquidation sites full#

You will be better equipped to decide if the sale items are bargains or hype. Before going to a sale, it’s best to comparison shop at other stores, in catalogs or online to get a sense of the best prices for the items you might buy to make sure you’re getting a good deal. DOUBLE CHECK THOSE BARGAINSĭon’t assume that everything you see at a going-out-of-business sale is at bargain basement pricing. Buying with a credit card can protect you, too, because some card issuers will remove the charge from your account under certain circumstances if you contest the purchase in writing. Also find out if there is a warranty on the product, so that you can appeal to the manufacturer if it turns out to be defective. That’s why it’s particularly important to make sure you’re getting products that are in good working condition and that boxes contain all the necessary parts.īefore you purchase, examine each item carefully for any damage, and see if you can test any electronics or appliances. If returns are possible, you still may be out of luck if the retailer shuts its doors for good before you can return the merchandise. For merchandise that may fail to function properly after purchase, be sure to find out before you buy whether all sales are final. If you find that the item you purchased at a liquidation sale is damaged, or if it stops working shortly after you buy it, chances are that you will be unable to return the product. The California Society of CPAs (provides some money-wise hints on the best way to make the most of these sales. Consumers can find some great bargains at these sales, but there are pitfalls to avoid to make sure you are getting a good deal.

Liquidation sites full#

These companies buy leftover inventory for a fraction of their retail value and then resell the goods in their own stores, generally for less than the full retail value, but more than they paid for them.One of the unfortunate consequences of a bad economy is a stream of liquidation sales, in which retailers large and small slash prices to unload merchandise before going out of business. Some liquidators are retailers, too, such as Big Lots, Tuesday Morning, and Ollie’s. These businesses may buy a company’s entire inventory, or assets, and then sell them to other retailers. If a company needs to liquidate its assets quickly, there are businesses that specialize in liquidation. Employees would be considered stakeholders.Īs cash is generated from the liquidation sale, creditors are paid in that order. Stakeholders – stakeholders are people or organizations that have a vested interest in the success of the business, but no formal claim on the assets.Unsecured – unsecured creditors, such as credit card companies, do not have a lien, or a security interest, in any of the assets, so they are repaid after the secured creditors have been paid.For example, when a company leases a car, the lender has a lien against the car, so if the business stops paying, the company can take back the car. Secured – a secured creditor has a lien against the business, or a commitment of assets to repay whatever was borrowed.But there are different classes of creditors that determine in what order they are paid. When a company’s assets are liquidated, or converted to cash, the cash is then used to pay off creditors. The biggest downside of inventory liquidation is that, in many cases, the timetable for liquidating assets is short, so the discounts are steep and the cash earned is much lower than the retail value. A business could liquidate most or all of its inventory as part of a move to a new location, thereby saving money on having to transport all of it to a new storefront.

Liquidation sales often occur as part of a bankruptcy filing, but not necessarily.

Other business assets that could be liquidated include: What Are Assets?Īssets aren’t just inventory, however. In the accounting world, liquidation refers to the process of selling all of a company’s assets to generate cash to pay off creditors, or anyone the company owes money to. Once all the assets have been sold, the business is shut down. In most cases, a liquidation sale is a precursor to a business closing. Liquidation generally refers to the process of selling off a company’s inventory, typically at a big discount, to generate cash.