Why Bankrupt Inventory Liquidators Are the Best Choice for Most Businesses

It’s been nearly impossible for other businesses to notice the bankruptcy filing of Sports Authority as reported in a recent Bloomberg news article. Although the recent bankruptcy of the country’s largest sporting goods chain has seen a steady tick in buyers for its onsite bankrupt inventory sales, it’s no model for the majority of businesses facing bankruptcy and inventory liquidation. For many businesses, their much smaller size, name brand recognition, and a host of other factors are things that make bankrupt inventory liquidators the best choice for liquidating inventory.

One thing that many businesses facing bankruptcy do have in common with the retail sporting goods chain is that their locations are often a factor in their poor sales to begin with. Although there are many factors that go into a business falling into bankruptcy besides their location, low traffic footprints can be detrimental to selling off bankrupt inventory at the same location. The legal time constraints of selling off inventory in a “going out of business sale” as well as cost and time concerns with commercial property landlords can also put greater financial strain on the ability to recoup top dollar.

Add in the fact that these businesses must invest in media buys to promote the sale and they see a further erosion of potential recoupment. One of the most costly line-items associated with liquidation is the retail advertising. The traditional bankruptcy liquidation approach puts time and financial pressure on the business to prepare and execute a media plan for the event. The last-minute nature of a traditional approach often means that the liquidator is forced into paying top dollar for media.

Sports Authority’s bankrupt inventory liquidation as reported in the Bloomberg news article was seen as a clear financial depression on the near-term profits of its competitors in the same cities. For smaller businesses dealing with bankrupt inventory, they face concerns with landlords fearing depressed sales and traffic for adjacent tenant businesses. While it’s unclear to what extent this is a reality in any given case, it can put pressure on businesses facing bankruptcy from landlords that would prefer not to have the visual of an unsuccessful business in their multi-tenant retail space.

Bankrupt inventory liquidators can help businesses to avoid these potential aspects that challenge their ability to maximize financial return on discounted bankrupt inventory. The fact that leading inventory liquidators like Ideal Trading Corp. can come in and provide business valuation services as well as a firm price on assessed inventory in a very short time enables a business to weigh its options in a clear ‘financial prospects’ way.

Clearly, the time constraints of the bankruptcy process as well as the building lease and other ongoing cost structures eat into recoupable income from inventory liquidation onsite. The ability to have bankrupt inventory moved in one fell swoop and have it off of the business’ plate enables them to more quickly satisfy creditors and get on a sound financial footing moving forward.

Ideal Trading Corp is a liquidation company in New Jersey that offers services for businesses to convert their assets to cash. With extensive experience in commercial liquidation and auctioning, we provide outstanding results for business owners who are going out of business, facing bankruptcy and more. 973.343.6684 – Contact us today!