Close Out Sale License

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It shall be unlawful for any person to advertise, offer to sell to the public or conduct any sale to the public of goods, wares, or merchandise on the implied or direct representation that such sale is in anticipation of the termination of a business at its present location, or that the sale is being held other than in the ordinary course of business. Without limiting the generality of the above, close-out sales shall include any sale advertised either specifically or in substance to be a "fire sale"; smoke and water damage sale"; "adjustment sale"; "creditor's sale"; "trustee's sale"; "bankrupt sale", "save us from bankruptcy sale"; "insolvent sale"; "insurance salvage sale"; "mortgage sale"; "assignee's sale'; "adjuster's sale"; "must vacate sale"; "quitting business sale"; "receiver's sale"; "loss of lease sale"; "forced out of business sale"; "creditor's committee sale"; "wholesalers close-out sale"; "liquidation sale"; or "removal sale"; without a license.

The provisions of this Section shall not be applicable to trustees in bankruptcy, executors, administrators, receivers or public officers acting under judicial process.

License Period

The license shall be for a period not exceeding 60 calendar days, including Sundays and holidays, and there shall be no extension or renewals.

License Fee

$150.00 is due at the time of application (cash, check payable to City Treasurer or credit with convenience fee).

How to Apply

Applications shall be made in writing on the form prescribed by law and filed with the City Clerk's Office, and shall include a complete and detailed inventory of the goods, wares and merchandise to be offered for sale as disclosed by applicant's records. Said inventory shall be attached to and become a part of the required application. Upon receipt of the application, the City Clerk shall cause an investigation to be made by the Chief of Police of all the facts contained therein. All applications for this license must be in writing to the City Clerk not less than fifteen (15) days prior to the granting of this license.

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Restrictions On Sales

person who has held a sale as regulated hereunder at a given location shall, within two (2) years last past from the date of such sale, be entitled to another license. For purposes of this subsection, a person, members of his immediate family, any corporation in which he or his immediate family has a majority interest, or two corporations in which the same person, or members of the same immediate family have a majority interest, shall be considered to be the same person.
Any person conducting a sale under the provisions of this Section at the conclusion of which sale the business will not cease and be discontinued, shall be required to publish this fact or the qualified nature of the sale with equal prominence with such advertisement of such sale. The fact that the business shall be continued at the same location at the conclusion of the sale shall not exempt the person conducting such sale from the provisions of this Section.
A license shall not be granted to any person who has not been the owner of the business identified or described in the application hereunder for a period of at least twelve (12) months prior to the date of the proposed sale.
When a person applying for a license where under operates more than one place of business, whether within the city or not, the license issued shall apply only to the one store or branch specified in the application and no other store or branch shall advertise or represent that it is cooperating with it, or in any way participating in the licensed sale; nor shall the store or branch transfer merchandise or articles to the store conducting such licensed sale; nor shall the store or branch conducting the licensed sale advertise or represent that any other store or branch is cooperating with it or participating in any way in the licensed sale.
It shall be unlawful for any person issued a license hereunder to conduct an auction sale in connection with a close-out sale of merchandise as licensed hereunder, except on the last day of such sale.

Questions?

For more information, contact the City Clerk's Office at (608) 789-7510.

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