Lets say fit, and finish did not meet standards.
I CAN see re-stamping, and selling as a sub name brand. GEC/EDC is a good example.
Cash strapped? I don't really know.
Take other industries as an example. Everything from Air Conditioners to Pharmaceuticals have sub standard products. They are not destroyed because they are inventoried as Export Inventory, and sold overseas at a reported loss. That "loss" is used as a tax break. They get credit on lost profit. Even more so when they "donate" those products to another underdeveloped country.
T shirts. The Cowboys are playing the Jets for the super bowl championship... Jets win but Haynes has 10 million T shirts already printed that say Dallas "Champs".
Those T's end up in Africa, Jamaica, the Philippines, or countless other countries as "donations" bearing a HUGE tax break.
Why would Knifes be different?
Destroying them is a total loss, Scavenging them is logical but selling them, and offering no warranty makes no sense unless they were so close to free that the buyer would not care.
Then you have the issue of new buyers thinking all XYZ knives are junk based solely on the junker he has in hand.
do not understand this.
WTB Kershaw 2120 MACHO Lockback Parts knife
I need a pile side scale. THX!