Company liquidation: sell your liquidation stock first
If you're considering company liquidation, it's often worth selling your stock before the company is wound up, while it's still worth the most. Talk to your accountant or insolvency practitioner first, then move quickly.
If you're considering company liquidation, it's often a good idea to sell your stock before the company is wound up. Of course, speak to your accountant or insolvency practitioner first. This is general information, not advice. But the timing of a stock sale can make a real difference to what it's worth.
Why sell stock before company liquidation?
Because stock usually loses value once a company is known to be insolvent. Buyers worry that warranties won't be honoured and that stock quality hasn't been looked after. They also know the seller is under pressure. All of that pushes the price down.
A common mistake is leaving the stock until last. By the time the company enters liquidation, the best options have gone.
What do the official sources say?
ASIC regulates companies, including winding up and deregistration. A solvent company's members can wind it up voluntarily, and in some cases a company can apply to ASIC for voluntary deregistration. ASIC recommends getting independent professional advice before choosing a path. Your accountant or a registered liquidator is the right person to talk to.
What are the usual ways to clear stock before liquidation?
| Option | Good for | Watch out for |
|---|---|---|
| Discount or VIP sales | Your own customers | Training them to wait for discounts |
| Auction houses | Mixed lots, fast | Low and unpredictable prices |
| Daily deal sites | Small consumer lines | Fees and fulfilment work |
| Charities | Goodwill, low value stock | No cash return |
| Discount retailers and wholesalers | Volume | You need the contacts |
| A stock buyer | The whole parcel in one deal | Pick one who protects your channels |
Our guide on clearance versus liquidation goes further.
How does selling to Coorey and Co work?
We buy the parcel ourselves and resell it through our own contacts. There are no broker fees.
- You send a stock list spreadsheet (SKU, description, quantity, cost or RRP if you're happy to share, best-before dates), photos and the location.
- John discreetly surveys the market to find out what the stock is worth.
- In most cases he makes an offer to buy all of it. If he can't, he gives his best advice on how to sell it.
If an administrator is already appointed, we'll deal with them directly. If you're closing rather than liquidating, see closing-down business stock.
Read our full guide to company liquidation, then contact us when you're ready.
Considering liquidation?
Share the details of your stock, attach a stock list or photos if you have them, and we’ll get back to you personally.
Thank you!
If the matter is urgent please contact John Coorey directly through john@coorey.com or 0411430047.
