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    In Re: v. Willis Furniture Co, 1st Cir. (1992)

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    The court upheld a bankruptcy court order forbidding the debtor from advertising its cash-raising sale as a "Bankruptcy Sale" or "Chapter 11 Bankruptcy Sale." The court found such advertising could mislead customers since much of the inventory being sold was new merchandise financed and supplied by a solvent company, not part of the debtor's present inventory. While the debtor argued the advertising prohibition was too broad, the court said the debtor had not argued below that a narrower disclosure requirement would suffice, such as requiring the debtor to disclose the existence of new inventory in the sale. The court affirmed the bankruptcy court's order but said the debtor could seek to modify it by explaining how an accurate advertisement containing the prohibited terms could also disclose relevant

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    In Re: v. Willis Furniture Co, 1st Cir. (1992)

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    The court upheld a bankruptcy court order forbidding the debtor from advertising its cash-raising sale as a "Bankruptcy Sale" or "Chapter 11 Bankruptcy Sale." The court found such advertising could mislead customers since much of the inventory being sold was new merchandise financed and supplied by a solvent company, not part of the debtor's present inventory. While the debtor argued the advertising prohibition was too broad, the court said the debtor had not argued below that a narrower disclosure requirement would suffice, such as requiring the debtor to disclose the existence of new inventory in the sale. The court affirmed the bankruptcy court's order but said the debtor could seek to modify it by explaining how an accurate advertisement containing the prohibited terms could also disclose relevant

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    Filed: 1992-12-11 Precedential Status: Precedential Docket: 92-2391

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    The court upheld a bankruptcy court order forbidding the debtor from advertising its cash-raising sale as a "Bankruptcy Sale" or "Chapter 11 Bankruptcy Sale." The court found such advertising could mislead customers since much of the inventory being sold was new merchandise financed and supplied by a solvent company, not part of the debtor's present inventory. While the debtor argued the advertising prohibition was too broad, the court said the debtor had not argued below that a narrower disclosure requirement would suffice, such as requiring the debtor to disclose the existence of new inventory in the sale. The court affirmed the bankruptcy court's order but said the debtor could seek to modify it by explaining how an accurate advertisement containing the prohibited terms could also disclose relevant

    Copyright:

    Public Domain
    Download as PDF or read online from Scribd
    Download as pdf
    27 views4 pages

    In Re: v. Willis Furniture Co, 1st Cir. (1992)

    Uploaded by

    Scribd Government Docs
    The court upheld a bankruptcy court order forbidding the debtor from advertising its cash-raising sale as a "Bankruptcy Sale" or "Chapter 11 Bankruptcy Sale." The court found such advertising could mislead customers since much of the inventory being sold was new merchandise financed and supplied by a solvent company, not part of the debtor's present inventory. While the debtor argued the advertising prohibition was too broad, the court said the debtor had not argued below that a narrower disclosure requirement would suffice, such as requiring the debtor to disclose the existence of new inventory in the sale. The court affirmed the bankruptcy court's order but said the debtor could seek to modify it by explaining how an accurate advertisement containing the prohibited terms could also disclose relevant

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    USCA1 Opinion

    December 11, 1992


    [NOT FOR PUBLICATION]
    UNITED STATES COURT OF APPEALS
    FOR THE FIRST CIRCUIT

    ____________________
    No. 92-2391

    IN RE:
    WILLIS FURNITURE COMPANY, INC.,
    Appellant.
    ____________________
    APPEAL FROM THE UNITED STATES DISTRICT COURT
    FOR THE DISTRICT OF MASSACHUSETTS
    [Hon. Joseph L. Tauro, U.S. District Judge]
    ___________________
    ____________________
    Before
    Selya, Cyr and Boudin,
    Circuit Judges.
    ______________
    ____________________

    Andrew M. Corwin and Eskenas, Schlossberg & Kaplan, P.C. on br


    ________________
    ____________________________________

    for appellant.
    Leonard M. Krulewich and Leonard M. Krulewich & Associates
    _____________________
    ____________________________________
    Emergency Motion for an Expedited Hearing, or in the Alternative,
    an Expedited Decision on Briefs Alone, for the Unofficial Credit
    Committee of Willis Furniture Company, Inc.
    ____________________
    ____________________

    Per Curiam.
    __________
    court order

    Debtor contends

    authorizing

    forbidding the sale

    debtor's

    that the

    cash

    raising

    bankruptcy
    sale,

    but

    to be advertised as a "Bankruptcy Sale,"

    "Chapter 11 Bankruptcy Sale," or

    words of similar import

    merchandise being

    part

    sold

    is

    not

    of

    debtor's

    if

    present

    inventory precludes truthful advertising and thereby violates


    debtor's First Amendment rights.
    The arrangement

    We disagree.

    debtor described with

    debtor to serve in

    large measure as a conduit

    ZLI may

    inventory,

    sell

    new

    financed

    debtor's premises and goodwill.


    debtor's
    furnished
    under

    the

    chapter

    11

    bankruptcy

    on a consignment
    pressure

    of

    through which
    ZLI,

    utilizing

    To refer to such a
    sale,

    basis by
    chapter

    by

    ZLI permits

    11

    when

    inventory

    a solvent
    to

    sale as

    raise

    is

    company not
    funds,

    is

    misleading.
    protected

    Misleading
    by the First

    or

    deceptive

    Amendment.

    advertising

    Friedman
    ________

    is not

    v. Rogers, 440
    ______

    U.S. 1, 13-16 (1979).


    Debtor contends that the advertising prohibition is
    broader than
    as a

    necessary since a narrower

    requirement that debtor

    prohibition -- such

    disclose the existence

    inventory brought into the sale -- would suffice.


    the excerpts of the record debtor has
    never argued
    debtor both

    below

    that

    to explain

    disclose accurately
    ZLI

    should

    be

    reconsideration,

    advertisement
    sale"

    rather

    narrower

    that

    it was

    permitted.
    debtor

    prohibition
    in chapter

    containing

    to

    another

    in the same manner.

    undeveloped argument,

    "chapter

    unfair not

    allowing
    11 and

    to

    argument with

    in

    the words

    it was

    of its

    Rather,

    pointed

    So far as

    presented show, debtor

    the circumstances

    and contended

    advertise

    of new

    moving

    for

    company's

    11 bankruptcy

    to allow

    debtor to

    We will not consider debtor's


    presented (so far

    as appears)

    for

    the

    first time

    on appeal.

    Nothing in

    this opinion,

    however, precludes debtor from seeking to modify the November


    16, 1992

    order and

    debtor could frame

    explaining to

    the bankruptcy court

    how

    an accurate advertisement containing

    the

    words "bankruptcy sale" or "chapter 11 bankruptcy sale" which


    also discloses

    the relevant aspects

    with ZLI.
    Affirmed.
    ________

    -3-

    of debtor's arrangement

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