What is Liquidation in Retail? Explained

Liquidation in the retail industry involves selling a company's assets, commonly merchandise, fixtures, or equipment, to convert them into cash. This process typically occurs when a business is closing down, going bankrupt, or undergoing significant restructuring. During a liquidation sale, items are usually offered at discounted prices to rapidly clear inventory and generate funds. Liquidation can be orchestrated by the company or by third-party liquidation firms. It serves as a crucial step in winding down operations and mitigating financial losses for the business and its stakeholders.