Tenant Insolvency: Liquidation Sales

A lease agreement may contain a clause that prohibits on-site liquidation, or bankruptcy sales.

Many landlords believe that on-site sales will cause disruption to the other tenants and fear that the sales will be conducted in an offensive manner.

Landlords will often consent to on-site sales if they are provided with an overview of the sales and marketing process in advance and are assured that the Trustee will conduct the sale in a professional manner.

Failing the agreement of the landlord, it may be necessary to obtain the consent of the Court to conduct an on-site sale. Courts have found in favour of Trustees and permitted liquidation or bankruptcy sales.

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