# liquidation

/ˌɫɪkwɪˈdeɪʃən/ (US) · /lˌɪkwɪdˈeɪʃən/ (UK) · CEFR C1 · Noun

Source: https://englishreference.com/word/liquidation
Updated: 2026-05-07

## Definition

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.

For teachers: 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.

## Examples

- 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.

## Usage notes

- Uncountable when referring to the general legal process; countable when referring to a specific instance or case.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.