Liquidation(by Kara Greenberg) - 趙永祥的數位歷程檔

Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due. As company operations end, the remaining assets are used to pay creditors and shareholders, based on the priority of their claims. General partners are subject to liquidation.

The term liquidation may also be used to refer to the selling of poor-performing goods at a price lower than the cost to the business or at a price lower than the business desires.

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Why Is 'Liquidation' the Term of the Day?

YCharts

Yesterday, Bed Bath & Beyond said it received a delisting notice from the Nasdaq exchange after shares plummeted over 30% this week to an all-time low following the company’s filing for Chapter 11 bankruptcy over the weekend. Nasdaq said Bed Bath & Beyond’s common stock would be suspended at the opening of business on May 3.

Bed Bath & Beyond had warned in January, and then again in March and earlier this month that it could go bankrupt as widening losses and negative cash flow threatened its ability to continue operating.

While Bed Bath & Beyond has already started the liquidation process, the retailer said it would keep its remaining namesake and buybuy BABY stores open as it as it winds down operations, and intends to use Chapter 11 proceedings to “conduct a limited sale and marketing process for some or all of its assets.” Bed Bath & Beyond asked courts to approve a bid deadline of May 28 and an auction date for June 2.

-Kara