i have thought about just closing the shop the end of december when the rent is fully paid up to date (apart from the 7 years @ 12k per annum left on the lease that is) but this would leave me with quite a bit of stock left over and also quite a sad way to finish so what if after christmas i have a closing down sale.
The problem here is of course the landlady will know my intentions and i don't know where i stand, is there anything legally she could do whilst i'm there i.e remove the stock of her own accord etc.
I would pay her every week i was there until the end.
any thoughts? i'm more interested in the legal side of things to be honest as no matter what i do i'm gonna be the bad guy.
Provided that you are up to date with the rent at the end of December then there is nothing technically that the landlord can do in 2 - 3 weeks ( provided that you continued to pay the rent over that period)
you would however get some serious grief because the landlord would want to know what your intentions were and could make things awkward.
the second area that you should consider is what you will do with the funds from the sale. You have to be VERY careful about prefering one creditor over another and if you do eventually enter Br you could end up with some quite unpleasant questioning.
incidentally what type of shop do you have and what value ( trade ) is the stock currently?
I would recommend that you have a conversation with an expert so you can prepare a safe and legal exit strategy that won't impact you afterwards
Paul Johns Assisted Bankruptcy Specialists Reviva UK www.revivauk.com
its a gift shop which is why hanging on until christmas is so vital, i don't understand why preferring one creditor over another would be so important.
do you mean don't take on any new ones between now and then and just pay the old ones?
Firstly you will need to identify to the OR when you decided to cease trading and why.
You should certainly not take on any further credit at all as the OR will get very excited about this and you may then be looking at an BRO.
Additionally if you decide which creditors to pay and which ones to ignore then you would be creating a preference which not allowed. The OR can technically undo these payments , collect the money and then share out the funds equally after costs.
Paul Johns Assisted Bankruptcy Specialists Reviva UK www.revivauk.com
The best way to close the shop
Posted - 30 August 2008 : 10:55:12
