"Going out of business" refers to a situation where a company or store stops its operations permanently. This often happens when a business is unable to pay its debts, generate enough sales, or compete effectively in the market. As a result, the business may sell off its remaining inventory and assets to pay creditors. When a business announces it is going out of business, it may hold a liquidation sale to attract customers. This sale typically offers significant discounts on products, allowing the business to clear out stock before closing. The process can affect employees, suppliers, and the local economy, as jobs may be lost and services reduced.