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    Liquidating a small retail business

    Sears said it will issue a full refund to any customers who have bought Sears Protection Agreements within the past 30 days.

    Customers whose warranties have yet to expire will be considered as creditors in the company’s court process through the retailer’s court-appointed bankruptcy monitor, FTI Consulting.

    The companies that earn their living through liquidation work are stereotypically thought of as bottom-fishing scavengers that profit from the misfortune of others.

    These stereotypes have become dated as more and more retailers find that liquidation can be a valuable means to an end.

    Generally, this amount is at least 20 percent less than retail value.

    To establish the liquidation value of your assets, work with a qualified appraiser and obtain a written liquidation value appraisal before you entertain any offers.

    Itemize and Prepare Your Assets If for whatever reason you decide not to use a liquidation professional, preparing a current inventory of your business assets in preparation for sale is an important first step.

    For decades the department store retailer has sold warranties that extend beyond the standard manufacturers’ warranties on parts and labour for goods such as refrigerators and dishwashers.Keeping outdated or worn-out equipment, furniture, or inventory will only diminish the appeal of your marketable items, so why not donate them to an appropriate charity and receive a tax deduction?And if you have items that are leased with an option to purchase, don’t just turn them back in — you might be able to pay them off for a few hundred dollars and sell them for a few thousand.This simple fact is quite disconcerting when you consider that a significant portion of the owner’s lifetime savings may be tied up in the inventory, and that converting this inventory to cash can be critical to his or her financial future.The following tips are aimed at helping such proprietors liquidate their assets and exit their businesses on their own terms: Consider Hiring a Liquidation Professional Although this is your first, and hopefully last, liquidation sale, it’s a routine occurrence for professional liquidators.

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