I own a hair and beauty franchise. We closed the salon on Saturday in readiness for going to court this comming wednesday, and also because we were getting loads of threats etc.
Are business was at the other end of the country to where we have moved to.
We went back to the salon today to find the locks changed. Later that day the Franchisor was in the salon with all the staff trading! with my fixtures and fittings!
I called HQ immediately and they said because we had shut the salon the landlord had peasefully signed the lease over to head office as we had not paid the rent. We spoke to the landlord in December as the rent was due on xmas day and up until that point we werent going BR and informed him we would pay the 3mths up front rent at the end of feb when we had the money together and had a bit of tax due back which he was happy with.
My question is can they do this, ie can the landlord just sign the lease over to HQ without any notice to us whats so ever? and can HQ trade from the premises with my staff and my fixtures and fittings without giving me notice etc.
I have asked permission to go in and get my fixtures and fittings and was told no the landlord had given them to HQ for us not paying the rent!.
I tried the police and they said it was a civil matter, tried the court and they couldnt help and the Insolvancy serivce wouldnt help either?
the Landlord has a right of distraint against any of your belongongs in the shop levied against rent owed - even if it is one day late. As rent was owed he has decided that something is better than nothing so has effectively taken ownership of the fixtures & fittings.
The franchisor has been made aware of the situation and has contacted the landlord and they have come to an agreement.
This is why when running a business it is critical to understand the processes and be completely aware of what can happen, when and how. It is much more fraught with problems than when simply petitioning as an individual.
Did you manage to remove your laser machine and a couple of other things that you need to continue trading from home?
Paul Johns Assisted Bankruptcy Specialists Reviva UK 08454 751 851
you will need to put this down on the Statement of Affairs so the OR knows that the assets have been taken over by the Landlord.
Would have recommended that if you closed the business on Saturday that you removed whatever was appropriate in the afternoon or evening- certainly by Sunday at the latest.
Paul Johns Assisted Bankruptcy Specialists Reviva UK 08454 751 851
URGENT - Can they do this
Posted - 05 February 2009 : 20:14:12
