'倒闭' (dǎo bì) is a compound verb meaning 'to go bankrupt' or 'to shut down permanently due to financial failure.' The first character 倒 (dǎo) literally means 'to fall over' or 'to collapse,' evoking the image of a business collapsing under financial pressure. The second character 闭 (bì) means 'to close' — together, they vividly convey the complete, irreversible closure of a company or shop caused by insolvency. It is used almost exclusively for formal, institutional closures — not for temporary shutdowns or personal financial hardship.

This term appears frequently in news reports, business discussions, and economic analyses. It carries a neutral-to-negative connotation, signaling serious failure rather than voluntary retirement or restructuring. Unlike colloquial expressions like '黄了' (huáng le, 'fell through'), '倒闭' is standard Mandarin and appropriate in both spoken and written contexts when discussing corporate or commercial failure.