For AI agents: read the machine-readable documentation index at /llms.txt or the single-file full reference at /llms-full.txt.
Form a Business

GOING OUT OF BUSINESS SALES

Memphis Code of Ordinances tit. 6, ch. 6-100
in effect

Memphis Code of Ordinances § 6-100-1 Definitions.

Sec. 6-100-1. - Definitions. As used in this chapter, the following terms shall have the following meanings unless a different meaning appears from the context: Director means the director of public services, or his or her designated representative. Inspector means the city employee selected by the director to inspect premises of going out of business activities. On hand means only those items on hand and in stock under the name of applicant applying for permit, for at least 12 months prior to making application, at the address which appears on the face of the permit form, and shall include no other items. Permit means a permit issued pursuant to this chapter. Permittee means any person to whom a permit has been issued pursuant to this chapter. Person means one or more individuals, partnerships, associations, corporations, business trusts, legal representatives, or any organized group of persons conducting a going out of business sale. Publish, publishing, advertisement or advertising includes any and all means of every kind of conveying to the public notice of sale or notice of intention to conduct a sale, whether by word of mouth, by newspaper advertising, by magazine advertisement, by handbill, by written notice, by printed notice, by printed display, by billboard display, poster, by radio or television announcement, and any and all means including oral, written or printed. Sales means the sale or any offer to sell to the public goods, wares and merchandise of any and all kinds and descriptions on hand and in stock in connection with a declared purpose, as set forth by advertising, on the part of the seller that such sale is anticipatory to the termination, closing, liquidation, revision, windup, discontinuance, conclusion or abandonment of the business in connection with such sale. It shall also include any sale advertised to be a "fire sale," "adjustment sale," "creditor's sale," "trustee's sale," "liquidation sale," "reorganization sale," "insurance salvage sale," "administrator's sale," "insolvent sale," "mortgage sale," "assignee's sale," "adjuster's sale," "receiver's sale," "loss-of-lease sale," "wholesaler's close-out sale," "retailer's close-out sale," "creditor's committee sale," "forced out-of-business sale," or "removal sale," and any and all sales advertised in such manner as to reasonably convey to the public that upon disposal of the stock of goods on hand, the business will cease and be discontinued. Seller means the owner or operator of a legitimate on-going business in daily operation for at least 12 months prior to making application for permit, and may be composed of one or more individuals, partnerships, associations, corporations, business trusts, legal representatives, or any organized group of persons desiring to conduct a going-out-of-business sale. Stock means only those items on hand, owned by seller, and in stock at least 12 months prior to making application for permit, at the address which appears on the face of the permit form, and shall include no other items. (Code 1985, § 2-395; Ord. No. 3834, § 1(1, 2), 1-3-1989; Ord. No. 3919, § 1(1—3), 12-19-1989)

Memphis Code of Ordinances § 6-100-2 Permit requirement.

Sec. 6-100-2. - Permit requirement. No person, firm or corporation shall hereafter publish or conduct any sale of the type defined in section 6-100-1 without a permit therefor. (Code 1985, § 2-396; Ord. No. 3563, § 1, 5-27-1986)

Memphis Code of Ordinances § 6-100-3 Application for permit.

Sec. 6-100-3. - Application for permit. A. The director is authorized and empowered to supervise and regulate sales or special sales defined in section 6-100-1, and to issue the appropriate permit therefor. B. Such permit shall be issued at the discretion of the director upon the written application in a form approved by the director and verified by the person who, or by an officer of the corporation which, intends to conduct such sale. C. Such permit shall contain: 1. A description of the place where such sale is to be held, the nature of the occupancy, whether by lease or sublease, and the effective date of the termination of such occupancy, the means to be employed in publishing such sale, together with the proposed language content in any advertisement; 2. An itemized list of the goods, wares and merchandise to be offered for sale, certified by an independent audit of a public accountant or a certified public accountant, which goods, wares and merchandise have been under the ownership and name of the applicant, and located at the address which appears on the face of the permit form, for at least 12 months prior to the making of the application; 3. Any additional information as the director may require. (Code 1985, § 2-397; Ord. No. 3563, § 1, 5-27-1986; Ord. No. 3834, § 1(3), 1-3-1989; Ord. No. 3919, § 1(4), 12-19-1989)

Memphis Code of Ordinances § 6-100-4 Issuance of permit—Time limit.

Sec. 6-100-4. - Issuance of permit—Time limit. Upon receipt of such application and payment of the fee prescribed in section 6-100-6, the director shall cause the same to be examined and investigated. If in any such investigation the director is satisfied as to the truth of the statements contained in such application, and as to the form and content of the advertising to be used in connection with such sale, he or she may then issue a permit permitting the publication and conduct of such sale. Such permit shall be for a period of not exceeding 30 days. (Code 1985, § 2-398; Ord. No. 3563, § 1, 5-27-1986)

Memphis Code of Ordinances § 6-100-5 Permit renewals.

Sec. 6-100-5. - Permit renewals. Upon satisfactory proof by the permittee that the stock itemized in the original application has not been disposed of, the director may renew such permit for the remaining items, for an additional 30-day period upon payment of the prescribed renewal fee. Such proof for a renewal permit shall be furnished in form to be issued by the director. The renewal application shall contain an itemized list of stock on hand and the same shall be verified by the applicant. The director shall cause the same to be examined and investigated, and if satisfied as to the truth of the statements therein contained, the director may issue a renewal permit for a period not exceeding 30 days; provided, however, that not more than three such renewals shall be granted for any such sale for the same location within a period of one year from the date of issuance of the first permit. (Code 1985, § 2-399; Ord. No. 3834, § 1(4), 1-3-1989; Ord. No. 3563, § 1, 5-27-1986)

Memphis Code of Ordinances § 6-100-6 Permit application fee—Renewal fee.

Sec. 6-100-6. - Permit application fee—Renewal fee. Upon filing an original application, or a renewal application, for a permit to advertise and conduct a sale or special sale, as defined in section 6-100-1, the applicant shall pay to the director a fee in the sum of $25.00. If any application or renewal application be disapproved, such payment shall be forfeited to the director as and for the cost of investigating the statements contained in such application or renewal application. (Code 1985, § 2-400; Ord. No. 3563, § 1, 5-27-1986)

Memphis Code of Ordinances § 6-100-7 Contents of advertising.

Sec. 6-100-7. - Contents of advertising. A. All advertisements or advertising and the language contained therein shall be in accordance with the purpose of the sale, as stated in the application pursuant to which a permit was issued, and the wording of such advertisements shall not vary from the wording as indicated in the application. B. Such advertising shall contain a statement in these words, and no others: Sale held pursuant to Permit No: _____ of Director of Public Services, granted the _____ day of________, 20___. and in such blank spaces shall be indicated the permit number and the requisite dates. (Code 1985, § 2-401; Ord. No. 3563, § 1, 5-27-1986)

Memphis Code of Ordinances § 6-100-8 Display of permit—Books and records.

Sec. 6-100-8. - Display of permit—Books and records. A. Upon commencement of any sale, as hereinbefore defined, the permit issued by the director shall be prominently displayed near the front entrance of the premises. B. A duplicate of the original application and stock list pursuant to which permit was issued shall at all times be available to the director or to inspectors, and the permittee shall permit such inspectors to examine all merchandise in the premises for comparison with such stock list. C. Suitable books and records as prescribed by the director shall be kept by the permittee and shall be at all times available to the inspectors of the city. D. At the close of the business day the stock list attached to the application shall be revised and those items disposed of during such day shall be marked thereon. (Code 1985, § 2-402; Ord. No. 3563, § 1, 5-27-1986)

Memphis Code of Ordinances § 6-100-9 Rules and regulations.

Sec. 6-100-9. - Rules and regulations. The director is further empowered to make such rules and regulations for the conduct and advertisement of such sale or special sale as in his or her opinion will serve to prevent deception and to protect the public. (Code 1985, § 2-403; Ord. No. 3563, § 1, 5-27-1986)

Memphis Code of Ordinances § 6-100-10 Suspension or revocation of permit.

Sec. 6-100-10. - Suspension or revocation of permit. The director shall have power to suspend or revoke, at any time, any permit granted in accordance with this chapter. (Code 1985, § 2-404; Ord. No. 3563, § 1, 5-27-1986)

Memphis Code of Ordinances § 6-100-11 Violations—Penalties.

Sec. 6-100-11. - Violations—Penalties. A. Any person who shall violate, neglect or refuse to comply with any of the provisions of this chapter shall, upon conviction thereof, be punished by a fine not to exceed $50.00. B. In addition to penalties provided in subsection A of this section, the city shall have all legal enforcement powers up to and including injunctive relief requiring violators to cease or suspend business operations and/or initiate court proceedings to enjoin such violations. (Code 1985, § 2-405; Ord. No. 3563, § 1, 5-27-1986; Ord. No. 3919, § 1(5), 12-19-1989)

Memphis Code of Ordinances § 6-100-12 Application of chapter.

Sec. 6-100-12. - Application of chapter. The provisions of this chapter shall not apply to or affect the following persons: A. Persons acting pursuant to an order or process of court of competent jurisdiction from one of the courts of Shelby County, Tennessee; B. Persons acting in accordance with their powers and duties as public officers, such as sheriffs and marshals, or city purchasing agents in the sale of surplus stocks; or C. Duly licensed auctioneers, selling at auction. (Code 1985, § 2-406; Ord. No. 3563, § 1, 5-27-1986; Ord. No. 3834, § 1(5), 1-3-1989)
Source: City of Memphis, Code of Ordinances and Charter and Related Laws (Municode Library, library.municode.com)URL: https://library.municode.com/tn/memphis/codes/code_of_ordinances?nodeId=TIT6BULIRE_CH6-100GOOUBUSAFetched: 10/28/2026

Starting a business in Tennessee? Tennessee LLC guide: costs and requirements