Company Liquidation | Sell your liquidation stock first
Author: John Coorey
If you are considering company liquidation, it is often a good idea to sell your liquidation stock before you go ahead and liquidate the company. Of course you should speak to your accountant or insolvency practitioner first, but here are some tips to help you sell your liquidation stock before you wind up!
What authoritative sites say about company liquidation
ASIC is the Australian Securities and Investment Commission, and they handle the winding up and company liquidation process. They recommend that you deregister the company through either the members voluntarily winding up, or applying to ASIC to voluntarily deregister the company. They recommend that you seek independent professional advice first before making this decision.
Also, Thompson Reuters have a publication called “MacPherson’s law of company liquidation” which also provides sound authoritative advice.
Make sure you sell your liquidation stock before you enter company liquidation
A common mistake that a lot of businesses make is that they forget to sell their liquidated stock before their company liquidation. This mistake can be fatal to the health of the business, because liquidation stock sells for only cents in the dollar once the company is insolvent. Stock buyers are concerned that their warranties won’t be honoured, and they also worry about the quality of the stock. That means that they will pay a lower price.
It’s a great idea to do whatever you can to sell your obsolete inventory early and for the highest price you can get. There are a lot of ways you can do this. Common ways to sell obsolete inventory include selling to auction houses, massive discount sales, VIP-only deals, daily deal sites, charities, discount retailers and wholesalers.
Contact us before you go into company liqudation
If you feel that you have tried everything and still can’t clear your liquidation stock, get in touch with us and we will help you sell your obsolete inventory before you enter company liquidation. Using a stock buyer like Coorey & Co. will ensure that you get the fastest sale and the highest price for your stock.