Bulk Sales Escrow

A way to make sure that creditors, especially unsecured ones, are protected when a company is at risk of bankruptcy.

Despite its clever marketing ploy to attract its target market, Pineapple Express (a pizza shop focused exclusively on pizza with pineapples) was going out of business.

When Seth, a creditor with an unsecured claim, caught wind of this, he called his friend, James, a lawyer. James created a bulk sales escrow account, sold all of the leftover pineapples and the pizza oven, and put the proceeds into this account, ensuring Seth would get enough of his money back to buy all the munchies he desired.