WordGarden.ioliquidation
B1Pronunciation
UK
- /lˌɪkwɪdˈeɪʃən/
US
- /ˌlɪkwɪˈdeɪʃən/
Meanings
Noun
the conversion of assets or positions into cash, especially when winding up a business or paying debts
the selling off of a store's or company's remaining stock, often at reduced prices
the deliberate killing of someone, especially by an organized group or regime
Beyond the definition
Imagine a shopkeeper deciding it's time to retire. They are not just locking the doors; they are holding a liquidation sale. That means selling everything: furniture, stock, even the cash register, often at very low prices. This usually happens when a business is closing and needs to turn its assets into cash. Sometimes it happens because the business cannot pay its debts, and sometimes it is simply a planned shutdown. You might also hear about "liquidating an investment," which means selling it to get cash.
Liquidation is the process of turning assets, the things a person or company owns, into cash. People often connect it with a business that is closing, but the idea can appear in other situations too. When a business is in liquidation, its property and goods are being sold so the money can be used to pay creditors, the people or companies it owes. This may happen because of serious money problems, bankruptcy, or a planned decision to close the business.
Think of it like this: if you are moving and need to downsize, you might sell furniture, electronics, and other belongings to raise money for your new place. That is a simple everyday example of the same idea.
Liquidation sales are famous for deep discounts because the goal is to sell everything quickly, even if that means taking a loss. The word is linked to "liquid," which gives the idea of turning property into ready cash.
Beyond business, you can "liquidate" investments by selling stocks, bonds, or property to get cash. For example: "She liquidated her stock portfolio to buy a house."
So, whether it's a struggling company, a downsizing individual, or an investor cashing out, liquidation is all about turning possessions into readily available funds—often under pressure and with the aim of settling debts or achieving a fresh start.
Examples
- 1
Business failure
The company went into liquidation after losing its biggest customer.
- 2
Customer refunds
The retailer is now in liquidation, so customers may not get refunds.
- 3
Paying creditors
During liquidation, the firm's assets will be sold to pay its creditors.
- 4
Closing sale
The furniture store announced a liquidation sale before closing for good.
- Phraseliquidation sale
a sale where a business sells goods quickly, usually because it is closing
More examplesFewer examples
- 5
Investing risk
Investors faced forced liquidation of their positions when prices fell sharply.
- Domainin investing, forced liquidation
selling investments because there is not enough money to keep them
See also
Similar
- winding up
- dissolution
Shades of meaning
- sell-off
- asset disposal
- fire sale
Contrast
- reorganization
- going concern
Used with (collocations)
- go into liquidation
- liquidation sale
- voluntary liquidation
- compulsory liquidation
Word family
Explore
Forms and spellings
1 form open this card.
Main spelling
- liquidationnoun