The Environmental Benefits of Liquidation: Reducing Waste Through Asset Reuse and Recycling

Becoming more eco-friendly in both our personal and professional lives is hardly a new concept, in fact, it’s something that organisations everywhere continue to practise and work on. A lot of the time, when a business goes into liquidation, they do not consider the environmental benefits that can come with it. This is fair enough, given liquidation can be an incredibly stressful period, the way that it might impact the planet tends to be at the back of a lot of business owners’ minds; however, the fact of the matter remains that by going through liquidation, businesses are actually benefiting the environment a great amount.


Liquidation occurs when an organisation finds itself in hard times and as such is not in a position to pay off various debts and liabilities that it might owe. There are a number of different reasons why a business might find itself in a position where it needs to be liquidated. When this occurs, the liquidation process includes the following steps:

The process of liquidation will get underway, this can take a few different forms such as a Members Voluntary Liquidation, a Creditors Voluntary Liquidation or a Compulsory Liquidation.

A licensed insolvency practitioner will be appointed to oversee the liquidation process and act in the best interests of both the business and the creditors.

The liquidation of the company will then be made public knowledge by being advertised in the Gazette. This gives any other unnamed creditors a chance to come forward and claim whatever it is that might be owed to them.

The company undergoes the winding-up This is where all of the different assets of a company are collated and have a value placed upon them before they are sold. This includes tangible assets such as office equipment and land, as well as non-tangible assets like stocks and shares.

All of the profit made from the selling of these various assets are used to pay off any liabilities which are currently owed to creditors

The last step is that the company is struck from Companies House and in turn ceases to exist.

To know more about the environmental benefits of liquidation


Location: United Kingdom

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