Selling insolvency stock: quickly and in an orderly way

Who sells, and why speed matters

Insolvency stock is best sold quickly and on the basis of a clear inventory. Storage costs keep running, goods age or go out of season, and every month of delay tends to reduce what can be achieved. The sale is usually arranged by the insolvency administrator, often with input from the company’s own staff.

A buyer who can value a lot quickly, pay promptly and collect without fuss helps the process most. These three points are worth comparing when you weigh up offers.

If several parties are involved, such as the administrator, the former management and the landlord, name one contact person for the buyer. A single point of contact avoids conflicting information.

Start with an inventory list

A list is the basis of every valuation. Photos of the warehouse and of typical pallets can save a lengthy site visit.

The list does not have to be perfect, but it should show clearly what is there:

• Product groups, articles and quantities
• Condition and age of the goods
• Storage location and access arrangements
• Existing documents such as packing lists, data sheets or purchase invoices
• Any known restrictions on resale, such as brand rules

Ownership and third parties

Not everything in a warehouse necessarily belongs to the insolvent company. Goods may be subject to retention of title, be leased, or belong to customers or suppliers. Clarifying this is a matter for the administrator, and affected items should be separated or at least marked on the list.

These are legal questions, and the answers depend on the individual case. If in doubt, take advice from a lawyer. This guide offers general orientation only.

Storage costs, access and timing

Rent, energy and staff for the warehouse continue until the goods are gone, so an early sale can be worth more than waiting for a slightly better price. Agree a collection date as soon as the price is settled, and make sure the buyer has access to the site, to the goods and to a loading area.

Goods that lose value fastest, such as seasonal items or fast-moving electronics, deserve attention first. Flag these lots at the start so that they can be assessed and collected without delay.

Collection and handover

In an insolvency sale the practical details matter: who is present at collection, how the quantities are checked and how the handover is recorded. A written handover record with the date and the items collected protects both sides.

If the premises also need to be cleared, say so in your enquiry so that it can be discussed. The same applies to machinery or fixtures that are hard to move.

Agree who is responsible for loading and for any damage that occurs during it. Where access to the site is restricted, for example because the landlord has to be present, arrange the date early.

Take advice where it matters

Insolvency law is complex, and decisions about the sale of assets can have consequences for creditors and for the administrator. Take individual advice from a lawyer or tax adviser before deciding. A written valuation and a written price are a sound basis for documenting the process.

It also helps to keep a record of the valuations you received and the reasons for the choice you made. This is general good practice and does not replace professional advice.