Buying Back your Business After Going into Liquidation
Putting your business in liquidation may seem like the end of the road, but if you believe that you can learn from your mistakes, then there is a way that you could give it another try. A phoenix firm refers to a firm which is re-born in some way, hence the name phoenix. It is where all the assets from one limited company are moved to another legal company, and you are still able to act as director.
Buying Back Your Firm After LiquidationThe firm you once owned and all its assets will be placed in the hands of the Administrators, whose job it is to recover as much money from the business as possible. Part of this will involve trying to sell your company for as much as they can, in order for them to do this, they may break it up into pieces, and sell off different sections, such as a contacts database.
You will not be able to operate under the same name, but you may be able to buy back parts of your business. If there is not much interest shown in parts of your firm, then the administrator will be looking to make as much money as they can, so may sell it to you cheaply. You will then have to register as a New Company, but can effectively carry on trading in a similar manner.
Returning Overstocks and MerchandiseAnything that is left over from your company after liquidation will try to be sold. You may have what is known as closeout merchandise and overstock merchandise, which is what will need to go on sale to pay any costs associated with your liquidation. It may be that you do not sell all the closeout merchandise and overstock merchandise, and there could be chance for you to buy back after the firm closed.
If you work in the retail sector, then you may be able to do a deal and return some of your stock to shops, and do some department store returns. If you have bought in bulk, then they may allow you to carry out some department store returns, which you could always buy back later.