How do I wind down a flooring company’s leftover inventory before a sale?

Start with a full count, room by room and pallet by pallet. Record the product, the quantity, the condition and what you paid. Sort it into stock that sells steadily, partial boxes, discontinued lines and damaged goods. Many suppliers accept returns of unopened full cartons, so ask what their rules are before you discount.

Next, choose your approach for each group. Odd lots can go to contractors at a reduced price, and remnants may suit smaller jobs. Be careful not to dump stock so aggressively that customers lose confidence or you leave the shelves empty before the buyer takes over. Talk with the buyer about what they want to inherit.

Finally, record the outcome. Your accountant can show you how to treat discounts and write-offs, and how inventory is counted at closing. Many sales use a count on the closing date, so agree on the method early. Keep records of what was sold, returned or discarded. If you plan to use financing against stock, a lender will want the same clear picture. Leave enough popular stock on hand that current customers can still be served during the sale period, so revenue does not dip while buyers are looking. Do not hide poor stock from the buyer. Disclosing it plainly avoids arguments later and usually keeps the deal on track.

Key takeaways

• Count and sort stock by how well it sells.
• Ask suppliers about returns before you discount.
• Agree with the buyer how inventory is counted at closing.