From Restaurant Equipment Liquidators To Negotiated Sales – How To Get Liquid After A Restaurant Fails

While no one begins a business thinking that it is going to eventually go out of business; or that they’ll potentially have to file bankruptcy or hire a restaurant equipment liquidator to help them recoup some of their losses, the sad fact is that most new businesses – especially restaurants - fail within the first year. With the current economy holding steady in the gutter, that’s more the reality than ever before. The big time debts that come from startup costs that were never recouped, inventory and stock that were never sold and other debts are like an albatross hanging on the owner’s neck and can significantly hinder their ability to move on to the next stage of their life.

Of course, there are ways to reduce the burden once a restaurant has folded. Even if you’re not quite liquid and it feels like your creditors are banging down your door, you have a few options to get money into your pockets. For example, you can pull in a restaurant equipment liquidator to help sell off what assets you have left. From tables and chairs to fryers and fish tanks, there are plenty of new restaurants coming in behind you that are eager to take it all off of your hands for a fair price. 

Even after a restaurant equipment liquidator has come in and helped relieve a good amount of your overdrawn accounts, the chances are that you’ll still have a heavy burden of debt to carry forward. For many restaurant owners, the only option to move forward is to declare bankruptcy. Since every scenario is different, it’s important to discuss all options with an attorney and an accountant. 

A few other options to get property off of your hands include a negotiated sale, a consignment sale, an online sale and of course, the tried and true going out of business sale. Here’s a bit more about each: 

• Negotiated Sales - If you go the negotiated sale route, again, you can call in a restaurant equipment liquidator to move inventory or you can call up one of your competitors. Your landlord might even want in, since a restaurant with equipment in place might be easier to sell or lease.
• Online Sales - Online sales are becoming more and more common thanks to sites like ebay and Amazon. If you’ve got really specialized equipment and want to turn the sale around quickly, this might be the most viable option for you.
• Consignment Dealers - Consignment sales are still around and if you go in this direction, you’re basically putting your trust in a dealer and pre-arranging an amount at which everything will be sold. Bear in mind that consignment sales take more time, but they also up the chances of recouping more money when all is said and done.
• Going Out Of Business Sale – This isn’t realistic for a lot of restaurants and is more popular for business that sell retail goods, but a lot of restaurateurs still give this garage sale-esque option a go, to varying degrees of success – especially if they’re really desperate for cash.

Article source: Contributed by RestaurantNewsResource.com, a global restaurant news distribution service.

While no one begins a business thinking that it is going to eventually go out of business; or that they’ll potentially have to file bankruptcy or hire a restaurant equipment liquidator to help them recoup some of their losses, the sad fact is that most new businesses – especially restaurants - fail within the first year. With the current economy holding steady in the gutter, that’s more the reality than ever before. The big time debts that come from startup costs that were never recouped, inventory and stock that were never sold and other debts are like an albatross hanging on the owner’s neck and can significantly hinder their ability to move on to the next stage of their life. 

Of course, there are ways to reduce the burden once a restaurant has folded. Even if you’re not quite liquid and it feels like your creditors are banging down your door, you have a few options to get money into your pockets. For example, you can pull in a restaurant equipment liquidator to help sell off what assets you have left. From tables and chairs to fryers and fish tanks, there are plenty of new restaurants coming in behind you that are eager to take it all off of your hands for a fair price.  

Even after a restaurant equipment liquidator has come in and helped relieve a good amount of your overdrawn accounts, the chances are that you’ll still have a heavy burden of debt to carry forward. For many restaurant owners, the only option to move forward is to declare bankruptcy. Since every scenario is different, it’s important to discuss all options with an attorney and an accountant.  

A few other options to get property off of your hands include a negotiated sale, a consignment sale, an online sale and of course, the tried and true going out of business sale. Here’s a bit more about each:  

• Negotiated Sales - If you go the negotiated sale route, again, you can call in a restaurant equipment liquidator to move inventory or you can call up one of your competitors. Your landlord might even want in, since a restaurant with equipment in place might be easier to sell or lease.

 

• Online Sales - Online sales are becoming more and more common thanks to sites like ebay and Amazon. If you’ve got really specialized equipment and want to turn the sale around quickly, this might be the most viable option for you.

 

• Consignment Dealers - Consignment sales are still around and if you go in this direction, you’re basically putting your trust in a dealer and pre-arranging an amount at which everything will be sold. Bear in mind that consignment sales take more time, but they also up the chances of recouping more money when all is said and done.

 

• Going Out Of Business Sale – This isn’t realistic for a lot of restaurants and is more popular for business that sell retail goods, but a lot of restaurateurs still give this garage sale-esque option a go, to varying degrees of success – especially if they’re really desperate for cash.

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