Our first experience of working with a liquidator was in the early stages of 2005. We were approached by a liquidator via our website who was effectively winding up and closing down a business in North East England. They did not know what stock they had and had no experience of identifying it. We inventoried the stock on site, valued it and made a cash purchase within 1 week.
Recently, in South of England, an EMS company got into difficulty. The administrators had moved in and were now running and managing the company. There was a period of time when they were evaluating the possibility of keeping the business running or selling it as a going concern. The business was to continue operating for at least six months while the evaluation process was carried out. In the early stages, we were able to help identify saleable stock from all the excess and obsolete stock which was uplifted and marketed immediately. This generated significant working capital for the business. As time went by, it became apparent that the business had no long term future we were able to uplift and market all the remaining electronic component stock for several more months before the final wind up order was given. All in we were able to realize 3 times more cash from the stock for the liquidator than would have been possible with a cash sale. What is more important is that there was little to no effort required from the liquidators in the process allowing them to focus on their main task while we handled the stock for them.
We physically collected all stock and took it off the premises. Marketed the stock, sold it and paid the liquidator (60% of what we were able to get for the stock as each item sold) but with the promise that at the end of the term a cash offer for the remaining stock would be made. Our end of term cash offer was paid at the original valuation prices for all remaining stock. This is a unique service designed for liquidators because at some point in the liquidation process you need to close the case off and this way we can maximise the return while guaranteeing a clean winding up. It was good for the liquidator and hopefully good for the clients’ creditors too.
Our consignment programme is so simple. Once the stock is uplifted our client has full open book data on all of the stock. Even the accounting is easy as we can set up self-billing and pay direct into a bank account of your choice each month.
Whilst we tend to prefer to buy or manage a wide variety of parts in a job lot a United States company once approached us called us to liquidate a high value single item. There were 20,000 pieces of this item worth $40 each. A single line item worth $800,000 carries significant risk for us as a cash buyer because if it does not sell we have lost the entire investment. We took the item in on consignment and the gamble paid off as eventually, it did sell and realized over $500,000 for our client.
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