Whitehall Can't Sell Consignment Goods: Judge

Law360, New York (July 30, 2008, 12:00 AM EDT) -- A bankruptcy court judge has rejected Whitehall Jewelers Holdings Inc.'s request to sell an estimated $63 million worth of consignment goods, siding with vendors that argued the goods don't belong to Whitehall.

Despite Whitehall's argument that it had legal and equitable interests in the consigned goods, the judge ruled that Whitehall had not met its burden of establishing that it owned the goods and denied the jeweler's motion pending the conclusion of adversary proceedings on whether the vendors' interests are valid.

“The court recognizes the burden...
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