liquidation
n.the process of closing a business and selling everything it owns to pay back its debts. It happens when a company can no longer continue operating.
n.the process by which a company is dissolved and its assets are converted into cash to satisfy creditors. Often involves a court-appointed official to oversee the distribution of funds.
“The shop is holding a sale before its final liquidation.”
“After the board failed to secure a new loan, the company was forced into compulsory liquidation to pay its staff and suppliers.”
“The sudden liquidation of the tech startup sent shockwaves through the local economy, leaving hundreds of contractors without pay and several high-profile investors facing significant losses.”
Uncountable when referring to the general legal process; countable when referring to a specific instance or case.
“The company behind Manchester Pride went into voluntary liquidation last year, owing more than £1m to suppliers and performers, including Nelly Furtado.”
“About 2 in 3 people use Chapter 7, a form of financial liquidation .”
From liquidate + -ion.
Etymology adapted from Wiktionary, available under CC BY-SA 4.0.