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Coweta changes rules on going out of business sales

New rules are now in effect governing “Going Out of Business” sales for companies stating that they are ceasing operations. Coweta County commissioners May 18 approved the ordinance amendment on a 3-2 vote.

The ordinance section entitled “Going Out of Business and Similar Sales” was added to ensure that such representations are true and not misleading, according to the ordinance.

The amendment states that prior to such a sale the business must notify the Business Tax Department and that the sale can be conducted for no more than 90 days. After 90 days it will be “unlawful to operate the business in any manner contrary to representations made that were made about the nature of the sale by the existing business,” the ordinance states.

The ordinance amendment included four provisions. One of those notes the use of terminology such as “inventory liquidation,” “fire sale,” “damaged sale,” “bankrupt sale,” “close-out sale,” or “emergency sale” will constitute a similar type sale that is essentially equivalent to “Going Out of Business.”

A second provision pertains to the wording used in any form of advertising for the sales and the provision that such advertising must be limited to 100 days.

The ordinance also stipulates that sale items must be bona fide and specific to the type of sale being advertised.

The amendment does not apply to authorized estate sales, those sales which are legally processed, sales of agricultural produce and livestock belonging to the seller, sales by a pawnbroker or loan company lawfully providing unredeemed pledges of goods and sales of automobiles by an auctioneer.

A further stipulation of the amendment states that signage pertaining to the sales must comply with the county sign ordinance.

The 3-2 vote came with commissioners Paul Poole, Randolph Collins and Tim Lassetter voting in favor of the amendment and commissioners Al Smith and Rodney Brooks opposed.

For more information on the ordinance amendment visit


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