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Judge Rules Whitehall Cannot Sell Consigned Goods
July 29, 2008

In  a decision that most in the industry will welcome, the judge in the Whitehall case has ruled that consigned goods will not be sold along with everything else in the upcoming Whitehall auction. For background on this, see here and here.

The judge seemed to feel that including consigned goods would be too dramatic and drastic an action: "Debtors [Whitehall] try to neutralize the Consignor Vendors’ impassioned objections by arguing that they are not seeking a full and final determination of the Consignor Vendors’ interest in the Consigned Goods. The argument ignores reality. The sale of the Consigned Goods either at an auction or in a going out of business sale, may reduce or eliminate the Consigned Vendors interests, fully and finally." 

The judge said these matters are better settled via litigation, even though this would require Whitehall to file 120 separate lawsuits. But as the judge notes, there are too many issues left to sort through, including whether the "name change from Whitehall Jewellers to Whitehall Jewelers [was] an effort to deceive the Vendors."

The eventual fate of Whitehall will be determined at the auction today on the 31st.

The full docket is available here (click "docket.") More info when it becomes available; feel free to give your thoughts below or send them confidentially to rbates@reedbusiness.com ... 

 


Posted by Rob Bates on July 29, 2008 | Comments (13)


July 29, 2008
In response to: Judge Rules Whitehall Cannot Sell Consigned Goods
Homer commented:

Is this good or bad? An alternative ruling would have meant the death of memo, but I know people who think that would be a g good idea in the long run...




July 29, 2008
In response to: Judge Rules Whitehall Cannot Sell Consigned Goods
peace out commented:

rob, i was under the impression that the auction was for the 31st. will you know something by the end of today? anxiously awaiting our fate!!!




July 29, 2008
In response to: Judge Rules Whitehall Cannot Sell Consigned Goods
Rob Bates commented:

Eesh ... sorry ... Today was when bids are due ... My understanding is the actual auction is July 31. In any case, as soon as I know something, I will put up either here or on the main site ... sorry, peace out! (By the way, if you see any more interesting emails, feel free to send them to the address above.)




July 30, 2008
In response to: Judge Rules Whitehall Cannot Sell Consigned Goods
Stuart commented:

I have followed this case from the onset, and it seems to me that even this sob judge realized he was breaking the law!! although bankruptcy judges make money from their appointed trustees who collect as much as possible, which is how the trustee gets paid and is able to pay another party (far be it for me to say a trustee would pay a judge....)even this particular bankruptcy judge thought his earlier ruling was so far off the legal mark he changed his opinion. Now lets see what this very intelligent jerky judge does with the Whitehall deception of their name change using 2 Ls instead of 1 L. Hopefully even this stupid judge will get it and understand that was purely fraudulent following this case borders on insulting my intelligence how the judge is handling it




July 31, 2008
In response to: Judge Rules Whitehall Cannot Sell Consigned Goods
OMG! commented:

Seriously? The auction appears to have been continued until next Monday. Is this the case? I'm sure I can speak on behalf of all WHall employees when I say that we are over this whole thing already, tell us our fate so we can move on with our lives. To any higher-ups who may be reading this, we know what's going on, we pay attention and we too, know people, so if you think you are pulling the wool over our eyes even a little bit, the joke is on you.




July 31, 2008
In response to: Judge Rules Whitehall Cannot Sell Consigned Goods
Rob Bates commented:

To OMG: a person who is in the know just told me the auction is still going on. It was always thought it might go late. This is one of the strangest bankruptcies I've ever seen, but the news will come when it comes ... Send any tips to rbates@reedbusiness.com ... Best of luck ...




July 31, 2008
In response to: Judge Rules Whitehall Cannot Sell Consigned Goods
peace out commented:

what are the chances the auction being over by tommorrow. my rvp is visiting my store 2morrow, and i want soething to talk about.




July 31, 2008
In response to: Judge Rules Whitehall Cannot Sell Consigned Goods
tired of this commented:

to all my fellow (male & female) co-workers at whitehall. They (upstairs) must really think we are stupid. The fact that rvps don't show caring, mdse shipments are nill,stock balances leave us with holes in our showcases and the rumors--wake up execs and tell us, your workforce the truth. Are we a viable concern at this point or are we all going to be out of jobs???




July 31, 2008
In response to: Judge Rules Whitehall Cannot Sell Consigned Goods
peace out commented:

i have never met my rvp and i will not make assupmptions that she thinks i am stupid..but after tommorrow, i asure you she will know i am not stupid. so..does anyone know the outcome of the auction?




August 1, 2008
In response to: Judge Rules Whitehall Cannot Sell Consigned Goods
soon2be? commented:

So what the HELL you can't tell me that there STILL in court has anyone heard anything?????? Peace Out what's going on? My stomach is in KNOTS I can't even stand to talk to myself, if anyone know's anything let us know I HATE hanging!!!!!!




August 1, 2008
In response to: Judge Rules Whitehall Cannot Sell Consigned Goods
Rob Bates commented:

Hey guys ... I was going to write this as part of my Diamond Shavings, but since you guys are so anxious, here is what I know. The auction went till 4 AM. I have heard one name mentioned as a winner, but since I haven't had that nailed down 100%, I am reluctant to report it at this point. I'm still working on it. The US trustee said they can't tell me, and Whitehall counsel doesn't return my messages. So that is where we are. One thing I heard stressed -- repeatedly -- is that people could still come in, and things still have to be approved by the judge on the 8th. So more waiting. I know this doesn't help people worried about their jobs, and I know it's nerve-racking, but that is what I'm hearing. I do think it's unlikely that Whitehall will continue in its current form, and some stores will almost definitely be closed. Keep checking jck for any further updates, but for now ... sorry ... that is all I've got. Best wishes to all ...




August 1, 2008
In response to: Judge Rules Whitehall Cannot Sell Consigned Goods
1stgroupcut commented:

Advice for soon2be - if I were you start looking for new employment. Even if Whji is lucky to survive, look what happened only 3 years ago? Company is still on shaky ground. Wish I had investigated company before agreeing to position. What a waste of time.




August 13, 2008
In response to: Judge Rules Whitehall Cannot Sell Consigned Goods
jewlery professional commented:

If I worked for whitehall I would leave now. The liquidation will run through xmas most likely and then you will be let go. How many jobs will be open then? The job market is constantly shrinking, change now while there is some chance of finding new work. I feel sorry for you but you need to be proactive to control your destiny. good luck!





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