For product businesses, inventory is often the largest single asset class in the ABC estate. How the assignee values and liquidates inventory determines a significant portion of what creditors ultimately receive.
Liquidation Channels
The assignee can sell inventory through: bulk sale to a liquidator (fast, certain, typically 20-40 cents on the dollar), industry auction (more time, potentially higher recovery), direct sale to existing customers (best recovery, requires operational capacity), or online liquidation platforms. The right channel depends on the nature of the inventory.
Bulk liquidators provide speed and certainty at a cost. A liquidator who offers 30 cents on the dollar in 30 days may produce better net results than a 90-day auction that yields 50 cents but costs 15% in auction fees and carrying costs. The assignee must do the math and document the rationale — creditors will scrutinize the decision.
The California ABC System gives business owners and creditors the exact tools, templates, and step-by-step guidance to navigate an Assignment for Benefit of Creditors — faster and cheaper than bankruptcy. Request your free evaluation here.
California ABC System — Assignment for Benefit of Creditors 
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