When the inventory at the manufacturing, wholesale or retail levels does not sell, it calls for liquidation.
If a business is closing down and has inventory to liquidate.
If goods were produced for a season and their supply can no longer be restocked (end of line stock)
If there is a new model that has replaced older ones.
If the delivery of the goods is delayed due to a hold up by customs.
If there was a compromise in quality of the products or if they are damaged.