liquidate the company

Meaning

To 'liquidate the company' means to formally wind up a business, terminate its operations, sell off all its assets, and use the cash generated to settle debts with creditors. Once the liquidation process is complete, the company is legally dissolved and ceases to exist.

Examples

• After three consecutive years of heavy losses, the shareholders voted to liquidate the company.

  After three consecutive years of heavy losses, the shareholders voted to liquidate the company.

• If we cannot secure emergency funding by next month, we will be forced to liquidate the company.

  If we cannot secure emergency funding by next month, we will be forced to liquidate the company.

• The court appointed an administrator to oversee the process and liquidate the company fairly.

  The court appointed an administrator to oversee the process and liquidate the company fairly.

• It is always a difficult decision to liquidate the company and lay off loyal employees.

  It is always a difficult decision to liquidate the company and lay off loyal employees.

• They managed to pay off all creditors in full when they chose to voluntarily liquidate the company.

  They managed to pay off all creditors in full when they chose to voluntarily liquidate the company.

Common Mistakes

• ✗ They decided to delete the company because of bankruptcy.

  ✓ They decided to liquidate the company because of bankruptcy.

  'Delete' is used for digital files or software accounts. To legally shut down and dissolve a corporate entity, use 'liquidate' or 'wind up'.

• ✗ The owners liquidated the company to cash.

  ✓ The owners liquidated the company.

  'Liquidate the company' is an absolute action that encompasses selling assets and dissolving the entity. Adding 'to cash' is grammatically incorrect and redundant.

Related Expressions

Practice

• Faced with insurmountable debt, the board had no option but to ___.

  💡 Shut down operations and sell everything to pay debts.

  Show answer

  liquidate the company

• The legal process to ___ can take anywhere from a few months to several years.

  💡 Officially close down the business entity.

  Show answer

  liquidate the company