rhizoverbBeta
DictionaryliquidationConversion to cash
noun

liquidation

lik-wih-DAY-shuhn/ˌlɪkwɪˈdeɪʃn/

The sale of assets for cash, often to settle debts.

The company's liquidation raises enough cash to pay its debts.

Closing shop owner oversees sale of remaining furniture and equipment while paying creditor from proceeds, bare shelves, no written signs.
Etymology
liquidatLatinto make liquid, make clear
+ionLatinaction or process

From liquidare, “make liquid” or “make clear,” this action noun first belonged to the legal treatment of debts and assets. Its use extended to winding up companies by selling their assets.

In context

Eric C Productions3:25
and the sale of others to home depot all remaining builder square stores were converted to home quarters brand reorganization plan was not successful and hetchinger filed for chapter 7 liquidation
Do You Remember Builder's Square?

More examples

  • The court orders the liquidation of the firm's remaining assets.
  • The liquidation of his investments covers the overdue tax bill.
  • Banks sometimes require liquidation of collateral when borrowers stop making payments.

Forms

liquidation · liquidations

liquidate verb — Sell assets to convert them into cash.

liquidator noun — Person responsible for selling a business's assets.

Similar words

sale
Sale covers any exchange for money, not necessarily debt repayment.
sell-off
Sell-off suggests selling many assets, often quickly or under pressure.