Asset Sales

Jewelry Retailer Debtor May Not Include Consignment Goods as Part of Section 363 Sale

By: Jonathan Borst

St. John's Law Student

American Bankruptcy Institute Law Review Staff

In In re Whitehall Jewelers Holdings, Inc.,

[1]

the court held against Whitehall Jewelers Holdings, Inc. (“Debtors”), in favor of approximately 124 consignment vendors (“Consignment Vendors”), where Debtors sought an order permitting the “free and clear” sale of all of their assets and inventory, including consigned goods from Consignment Vendors.

[2]