Clearance Sale!

[Nordic Bill]

Sorry if this one has people scurrying around for coupons ...
But I am very curious as to what what a CLEARANCE SALE actually entails.
Does it indicate the shop is going out of business or just that they wish to "clear" the shelves of last season's merchandise to make room for the upcoming season?
If so, what signs are posted outside a store that is about to go out of business? Would that be "CLOSING SALE"?
Thanks,
Bill

[Tdol]

Usually, it mean bigger than normal reductions to clear the shelves, but sometimes is used when the place is closing. 'Closing (down) sale' would be used when the shop is being honest about its finances.