Country Junction, Inc. v. Money Exchange (In Re Country Junction, Inc.)

MEMORANDUM OPINION

JOSEPH C. ELLIOTT, Bankruptcy Judge.

This case involves a preferential transfer under § 547 of the Bankruptcy Code. The issue to be determined is whether the Creditor receiving the transfer has established the defense of new value pursuant to § 547(c)(4). This opinion shall constitute findings of fact and conclusions of law under Bankruptcy Code Rule 7052.

The Debtor, Country Junction, Inc., was in the business of purchasing wearing apparel and merchandise from manufacturers and wholesalers and selling these items at retail. Money Exchange and San Francisco Shirt Works were…