Many states (and some cities) require companies to obtain "going out of business sale" permits for this very reason. It's considered a deceptive and fraudulent

Many states (and some cities) require companies to obtain "going out of business sale" permits for this very reason. It's considered a deceptive and fraudulent practice to have a final liquidation sale when the firm is not really going out of business. See, for example, the form required in TX (a state not known for heavy regulation compared to say, CA): http://www.window.state.tx.us/taxinfo/taxforms/50-290.pdf http://www.window.state.tx.us/taxinfo/taxforms/50-290.pdf [pdf] § 17.82. Prohibited Conduct (a) A person may not conduct a sale advertised with the phrase "going out of business," "closing out," "shutting doors forever," or "bankruptcy sale"; the word "foreclosure" or "bankruptcy"; or a similar phrase or word indicating that an enterprise is ceasing business unless the business is closing all of its operations in a county and in all of the counties immediately adjacent to that county and follows the procedures required by this subchapter. (b) A person may not fraudulently represent that the person is conducting a going out of business sale.