Bankruptcy stock and closing-down sales: auction or stock buyer?

What happens to stock in a bankruptcy?

In a bankruptcy, the stock becomes part of the estate. The receiver sells it to pay the creditors: through a bankruptcy auction, a restart or directly to a stock buyer. Selling to a stock buyer such as Kooistra.com is often the fastest route: an offer on the complete stock as soon as we're interested, and we collect and pay immediately.

The same question comes up without a bankruptcy: if you close your business, the stock has to go, either through a closing-down sale or in one go to a stock buyer. In this article we explain how a bankruptcy auction works, when selling to a stock buyer brings in more, and how you as a retailer can actually benefit by buying bankruptcy lots.

Bankruptcy auction: how does it work?

In a bankruptcy auction, the stock (often together with other business assets) is auctioned online in lots. The receiver instructs an auction house, buyers bid over a fixed period and the highest bidder wins. Auction fees (buyer’s premium) and VAT are added to the bid, and the buyer has to collect the lots themselves at a fixed time.

For buyers: opportunities and pitfalls

For buyers an auction can be interesting: prices are below the regular purchase price. But there are pitfalls. You buy the lot as it is, usually without a guarantee and sometimes without being able to inspect the contents properly. You pay a buyer’s premium on top of your bid, you arrange your own transport within a tight time slot, and popular lots still get bid up in the last few minutes. If you want to buy on a regular basis, you are often better off, and on more predictable terms, with a specialist stock lot wholesaler. See also our guide buying surplus stock.

Why auctioning doesn’t always bring in the most

The same applies to the selling side: an auction seems to promise the highest return, but in practice it often disappoints. The proceeds are uncertain, lots remain unsold or go for a fraction, and registering, auctioning, payment and collection quickly add up to weeks, while the rent on the premises keeps running and the estate incurs costs. A stock buyer offers one fixed price for the whole and collects everything in one go.

	Bankruptcy auction	Sale to a stock buyer
Proceeds	Uncertain, per lot	Fixed offer for the complete stock
Lead time	Weeks	Offer right away if interested, collection straight after
Residual risk	Unsold lots are left behind	None, everything goes in one go
Costs	Auction fees and organisation	None; we arrange transport
Premises empty	After the collection days	As soon as possible, by agreement

A faster alternative: selling the complete stock to a stock buyer

A stock buyer buys the entire stock in one transaction: one offer, one collection, immediate payment. No lots, no leftovers, no weeks of waiting. That "take-all" principle is the big difference from every other route: where auction buyers and marketplace visitors pick out the fast-moving items, a stock buyer also takes the slower-moving part. That remainder is otherwise the most expensive to get rid of. You can read how the process works step by step in selling surplus stock to a stock buyer.

For receivers and administrators

For receivers, what counts is a demonstrably market-based return at the lowest possible cost to the estate, and speed, because every week of storage and rent weighs on the estate. Kooistra.com makes an offer on the complete stock right away if interested, arranges transport itself and pays the invoice immediately. We work discreetly, can have a shop inventory packed if required, and have the organisation and financial strength for large volumes: from one pallet to hundreds or thousands of pallets. Brand restrictions are not a problem. We sell worldwide, including in the Middle East and Africa, outside the original supplier’s market.

For business owners who are closing: closing-down sale or everything gone in one go

If you are closing without a bankruptcy, a closing-down sale is the familiar route: mark everything down and sell off for weeks. That brings in more per item, but costs months of rent, staff and energy, and it rarely clears the last remnants. The alternative: sell the complete stock in one go to a stock buyer and close the door on the date you choose. A combination works too: first sell off yourself, then the remainder to us in one go.

An offer straight away if we're interested, we collect

This is how it works at Kooistra.com: you offer the stock via kooistra.com/partij-aanbieden, by email to inkoop@kooistra.com or via WhatsApp, with a description, quantities and photos. If we're interested, you receive a no-obligation offer for the whole straight away. Once agreed, we arrange transport, collect the lot as soon as possible and pay immediately.

Buying bankruptcy lots from Kooistra

The other side of the same trade: bankruptcy and closing-down stock that we buy up, we sell on to retailers, market traders, online shops and exporters. The best-known example: we bought 202 shipping containers full of Blokker items and helped Blokker franchisees to fresh stock for their restart. RTL Z, De Telegraaf and Omrop Fryslân wrote about it. As a business buyer you benefit from that: branded products by the outer carton, at stock lot prices and without the risks of an auction lot. You see exactly what you are ordering in advance. The minimum order value in the online shop is €150 excluding VAT; in the Netherlands we deliver free from €500. View the current range in our online shop. The range changes all the time.

Step-by-step plan: closing a business and your stock

Whether you are stopping on your own initiative or under pressure of circumstances, the stock is usually the biggest item still worth money and also the biggest cost for as long as it sits there. So tackle it in a planned way, in five steps from overview to empty premises:

1. Map out the stock. Make a list of items, quantities and purchase value, and take representative photos.
2. Set your deadline. When do the premises have to be empty? Work backwards: a sale takes months, a stock buyer takes days.
3. Choose the route. Sell off yourself, auction, or sell in one go. Or a combination: first a sale, then the remainder to the stock buyer.
4. Request an offer. Without obligation via sell us your stock; if we're interested, you know straight away what the complete stock is worth.
5. Hand over in one go. Once agreed, we collect and pay immediately, and your stock is no longer a worry.

Frequently asked questions

What happens to the stock in a bankruptcy?

The stock becomes part of the estate. The receiver sells it to pay the creditors: through a bankruptcy auction, a restart or directly to a stock buyer who takes over the complete stock in one go.

Does Kooistra.com buy complete bankruptcy stocks?

Yes. We buy bankruptcy and closing-down stock of any size, from one pallet to thousands of pallets. If we're interested, we make an offer straight away, arrange transport and pay immediately. We buy only from businesses and receivers, not from private individuals.

What is the difference between a bankruptcy auction and selling to a stock buyer?

An auction sells in lots with uncertain proceeds, auction fees and a lead time of weeks. A stock buyer makes one fixed offer for the whole, collects everything in one go and pays immediately, with no residual risk.

How quickly can stock be collected?

Once our offer is accepted, we schedule transport as soon as possible, in consultation with you or the receiver. We arrange the transport ourselves and pay the invoice immediately.

Can I buy bankruptcy lots as a retailer?

Yes. Kooistra.com sells bankruptcy lots and surplus stock it has bought by the outer carton to business customers through the online shop, from €150 excluding VAT. That way you buy branded products at stock lot prices, without the risks of an auction.

Written by the Kooistra.com team, stock buyer and surplus stock wholesaler on the Apolloweg in Leeuwarden since 1979; the family has been in trade since 1935. More about us.