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United States Bankruptcy Court for the District of Delaware
February 6, 2009, Decided
Chapter 11, Case No. 08-11133 (CSS) Jointly Administered, Re: Docket Nos. 1027 & 1104
Before the Court is the Third Omnibus (Non-Substantive) Objection of the Reorganized Debtors to Misclassified 503(b)(9) Claims (the "Objection") filed by Goody's Family Clothing, Inc. and its affiliates (collectively, the "Debtors"). The Debtors argue that the claim of Added Value Services, Inc. ("AVS") is misclassified as an administrative claim under section 503(b)(9) of the Bankruptcy Code, which provides for an allowed administrative claim for the value of goods received by a debtor within 20 days of the bankruptcy filing because AVS provided services to the Debtors rather than selling "goods."
The Court finds that AVS's services do not constitute "goods" within the meaning of section 503(b)(9) and, thus, it is not entitled to an administrative claim under that section.
The [**2] Court has jurisdiction over this matter pursuant to 28 U.S.C. § 1334. Venue of this proceeding is proper in this district pursuant to 28 U.S.C. §§ 1408 and 1409. This is a core proceeding pursuant to 28 U.S.C. §§ 157(b)(2).
PROCEDURAL AND FACTUAL BACKGROUND
On June 9, 2008 (the "Petition Date"), the Debtors filed voluntary petitions for relief under chapter 11 of the Bankruptcy [*133] Code. 3 The Debtors are a moderately priced family apparel retailer, which, as of the Petition Date, operated approximately 350 stores in small to midsize markets throughout the United States.
AVS was one of Debtors' vendors, providing certain services, including inspecting, ticketing, and repackaging apparel purchased from other vendors. During the twenty days prior to the Petition Date, AVS submitted the following invoices to Debtors:
Full case includes Shepard's, Headnotes, Legal Analytics from Lex Machina, and more.
401 B.R. 131 *; 2009 Bankr. LEXIS 160 **; Bankr. L. Rep. (CCH) P81,439; 61 Collier Bankr. Cas. 2d (MB) 731; 51 Bankr. Ct. Dec. 50
In re: GOODY'S FAMILY CLOTHING, INC., et al., Debtors.
garments, administrative claim, Inspect, administrative expense, vendor, Invoice, misclassified
Bankruptcy Law, Unsecured Priority Claims, Administrative Expenses, General Overview, Governments, Legislation, Interpretation, Commercial Law (UCC), Subject Matter, Goods, Definition of Goods, Priority, Evidence, Burdens of Proof, Allocation