Bankrupt Stock

Liquidation auctions are the auctioning of goods or assets. These goods may have been seized by government departments or financial lenders in order to reclaim money owed to them.
The bankrupt stock and assets for sale of the suppliers are then auctioned of to the highest bidder, usually if money is owed the repossessed goods will be auctioned in a no reserve auction. This is done to keep auction costs down for the financial lenders and avoids them having to pay out more money for auctioning fees if the goods do not sell due to a high reserve price.

Liquidation Stock Sales

Retailers may have purchased to much stock and just want to get rid of the excess to make room for new inventory. Some will just auction of this stock at below wholesale prices in order to move it.
These wholesale clearance auctions are held either online or at a local auction house. Most of the stock will be sold in bulk lots and not individually. These auctions can be profitable for smaller retailers, online eBay stores or market sellers.