what is a liquidation sale 
companies may also engage in liquidation sales to reduce costly inventory at rock bottom prices it isn t uncommon to see a retailer advertising a liquidation sale selling off as much if not all of their stock often at a deep discount to consumers in some cases this may be due to insolvency but don t always do this because they re closing down some stores do this to get rid of and replace the older stock with new inventory who pays for a liquidator the liquidator s fees and expenses are covered by the company s assets after they have been sold off in the absence of cash or an asset sale the liquidator is paid using money from shareholders or the company s directors 34the bottom lineliquidators step in when companies are in financial distress usually when they re about to go bankrupt assigned by the court creditors or shareholders this individual is responsible for taking charge of a company s assets selling them off and paying its creditors in other cases they may bring legal claims or defend companies in lawsuits because they have a fiduciary responsibility liquidators must act in the best interests of the company court creditors and shareholders 