Liquidate
/ˈlɪkwɪdeɪt/verb
To sell off a business or its assets to pay off debts.
The company was forced to liquidate its assets to pay its creditors.
Often appears as...
- liquidate assets
- liquidate a company
Usage tips
Formal
Technical
Definition 1 of 3
Pro Tip 1/3Financial Distress
Used when a company cannot meet financial obligations and must sell assets.
After the lawsuit, they had to liquidate to survive.
Pro Tip 2/3Not Just Closure
'Liquidate' often implies selling assets before closing a company, but can also occur while still operating.
The business chose to liquidate surplus inventory while continuing sales.
Pro Tip 3/3Legal Implication
The process may be overseen by courts or legal professionals to ensure fairness.
The court appointed a manager to liquidate the company's assets.
Compare with
clear outdispose ofeliminatorliquidizepay offsell offsettle
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