You don't need it: If you heard about a liquidation sale where a company is selling some type of gadget and now you find yourself wanting one, you did exactly what the liquidator wanted you to do.
If you really wanted the gadget, it would have been on your list, after all.
The first rule of smart shopping is that, if you don't need it, it's not a bargain no matter what the price.
Winding up of a firm by selling off its free (un-pledged) assets to convert them into cash to pay the firm's unsecured creditors.
(The secured creditors take control of the respective pledged assets on obtaining foreclosure orders).
Any remaining amount is distributed among the shareholders in proportion to their shareholdings.
Liquidation process is initiated either by the shareholders (voluntary liquidation) or by the creditors after obtaining court's permission (compulsory liquidation).
The prices aren't that good: When people hear the words "liquidation sale," they assume the main purpose is to get rid of merchandise quickly, meaning cheaply.
While moving the inventory is one goal, it's not the primary goal. Since "liquidation sales" usually last several months -- Circuit City's will last till the end of March -- there is no incentive to slash prices from the outset.
In fact, most liquidators will actually raise prices to full retail or a token 10% off because they know the store will be packed with people.
There are bound to be a large number of store liquidation sales this year, but you'd be smart to skip them.
Circuit City ( CC) recently announced it had hired liquidators to sell off its inventory.