'closeout' originates from the combination of 'close' and 'out', where 'close' meant 'to shut' and 'out' indicated 'completion'.

'closeout' evolved from the phrase 'close out' used in business contexts to indicate the completion of a sale or transaction.

Initially, it meant 'to complete a sale', but over time it evolved into its current meaning of 'a sale to clear out stock'.