What does it mean for the company to declare liquidation?

Liquidation means that the company declares bankruptcy, stops its business activities, liquidates all or part of its assets to pay off its debts, and finally cancels the company. This is an extremely serious economic event, which usually happens when the company can't repay its debts and there is no other feasible solution.

There may be many reasons for liquidation. Some economic problems may make it impossible for enterprises to continue to operate, such as high debts, plummeting sales, unfavorable legal judgments, etc. Other reasons may include fraud charges, mismanagement or pressure from other competitors in the market.

3. The impact of liquidation on enterprises and employees:

The impact of liquidation on enterprises is devastating and brings terrible economic consequences. In the process of liquidation, the company will be split, auctioned or sold to repay its debts. For the employees of the company, this may be a nightmare, because it affects a wide range, including unemployment, loss of future career path and financial impact. In a period of time, the company's suppliers, partners and customers will face a series of blocked economic obstacles, which will have a negative impact on the whole market.