Legal Question in Business Law in California

The answer depends on a lot of details about the business that you have not provided, such as whether the store structure is owned or leased, if leased on what terms, whether the inventory secures any payables, etc., and what the ownership structure of the business is, and that's just for starters. It is also not automatically a good idea to transfer ownership of the business, as that can have business and tax consequences. People who are arrested or even go to prison do not lose the right to own a business. So it may be better to arrange for someone to run it while retaining ownership.

I agree with the previous answer, and would add a couple of thoughts. What can be done may depend upon whether the owner is in custody or not. If he is free on bail or on his own recognizance, there should not be a problem with him negotiating on his own behalf, whereas if he remains in custody (not too likely), a power of attorney may be appropriate. However, there is a big caution note about your question when you mention "transfer of ownership" instead of just "sale." This suggests he may be thinking about just giving away the business to a family member to avoid losing it as a result of an unfavorable civil judgment or a restitution order after a criminal trial. Such a transfer to protect property from judgments and creditors would almost certainly be fraudulent, and if (or when) discovered, would be set aside and both the transferor and the transferee would be liable for fraud. If the business does change hands, be sure it is for fair value and not a gift or an unreasonably low price.

Agreed that it depends on several factors. If his lease or liquor license doesn't prohibit it, he could use a properly done power of attorney to a family member or friend to run it temporarily. That would not likely constitute a 'sale' or 'transfer' of ownership. A sale or transfer would cause substantial issues and problems to be solved with lease and licenses, and require a series of re-negotiations of agreements with lenders, lessors, licensing agencies, etc. before it could be done. If he is serious about getting legal help with this, feel free to contact me. If he is in custody, meetings and discussions would have to be arrange with him.