Liquidation

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This route is usually the last resort for a company and following the conclusion of the liquidation the company ceases to exist.

If the company is insolvent and can no longer pay its way and continue trading, it could enter into a Creditors Voluntary Liquidation or Compulsory Liquidation. In simple terms this is the corporate equivalent of bankruptcy. In some cases, the loss making entity can be closed allowing the assets and often the employees, to be transferred to a new, viable company (see also Pre-Pack Administration and Pre-Pack Liquidation).  

Another type of liquidation occurs where the company is solvent but circumstances dictate that it should be wound up - a Members Voluntary Liquidation (MVL). This could occur for example where the purpose for which the company was created no longer exists, or for tax planning reasons.