Bankruptcy goods
Under bankruptcy goods - also called insolvency goods - are goods that are used to increase the bankruptcy estate by an insolvency administrator .
Definition of terms
Bankruptcy goods are goods that stem from the bankruptcy or insolvency of a commercial company. Originally, these products were regularly obtained from a dealer through the manufacturer or a reseller , then paid for by the dealer and put in stock. Accordingly, they are owned by the dealer's company. If the dealer no longer has sufficient liquid funds to cover the costs of running the company, it is called bankruptcy. Bankruptcy means that the company is currently insolvent, but still has assets that can be used to settle the outstanding claims. If there are still goods in the dealer's warehouse at the time of bankruptcy, these can be declared as bankruptcy goods accordingly.
In order to be able to liquidate the goods more easily, bankruptcy goods are offered at a selling price that is sometimes well below the original purchase price . The main reason for such a cheap sale of the high-quality goods is the high cost that the storage of goods causes as well as the long time until the goods are sold with an offer at the regular price. During this period, the company could not be dissolved, which means that all ongoing company costs continue to be incurred. As a result, bankruptcy would lead to bankruptcy (total insolvency). The resulting additional costs for further storage and company management are significantly higher than the loss that results from the cheaper sale of the goods.
The low purchase price usually makes contact with a potential buyer quickly. Numerous dealers have specialized in the business of bankruptcies and remaining stock and buy whole lots. Bankruptcy goods are then available in residual and special item markets , which, due to the low purchase price, can offer the goods at significantly lower prices than the original dealer would have been able to. However, bankruptcy goods should not be confused with remaining stock or B-goods items. Remaining items are, as the name suggests, the remaining items of a special product type that is no longer manufactured in this form, while B-goods items are made up of returns, items with damage cases and defective productions.
Advantages of bankruptcy goods
The quality of the goods in bankruptcy does not necessarily differ from the usual merchandise , but from the customer's point of view they are offered below value. For the insolvency administrator and the bankrupt located companies the means lower storage costs until their TERMINATION elimination while increasing the cash for the operation of the creditors .
Disadvantages of bankruptcy goods
The guarantee for the customer is no longer available , as the company no longer exists in its original form after the bankruptcy or bankruptcy has been fully resolved . In addition, the risk of a bad purchase (in the case of bankrupt goods, no contractual right of exchange is usually agreed) and the possible lack of accessories and spare parts is worth mentioning. For in liquidation owned enterprises are part of the cost of uncollectible and the sale of goods is carried out under the cost price .
