Arley Corporation (Arley) (plaintiff) was a home furnishings manufacturer and wholesaler. Home Fashions Outlet, Inc. (Home Fashions) (plaintiff), Arley’s wholly owned subsidiary, was a retailer. CIT Group/Business Credit Inc. (CIT) was a creditor who had a perfected security interest in Arley’s assets, including its inventory. Galey & Lord, Inc. (Galey) sold textiles to Arley. In May, Galey sent a letter to Arley demanding the return of goods received within ten days. In June, Arley and Home Fashions (the Debtors) filed petitions for Chapter 11 bankruptcy. Galey made a claim for reclamation. In September, the bankruptcy court approved of a plan for the Debtors’ assets to be sold as a going concern. The agreement required that the Debtors change their corporate names; Arley became Arlco, Inc. (Arlco), and Home Fashions became HFO, Inc. Galey moved for summary judgment, which the bankruptcy trustee opposed.