Major Cinema chain owes £1250 - send solicitors letter?

[UKbusiness2018]

Hi

So I run comedy clubs in venues around UK. One venue is a cinema. They are the only venue that settles in cash with me meaning if I cannot attend that date we'll settle the next month or month after that whenever I can get there.

In mid February we held a show from which they took around £1250 in ticket money (as it happens due to a health and safety issue we had to move the show entirely at short notice to another venue and it was agreed that they still pay me the full £1250 as they weren't able to put on the show and I had still had provide a show to the customers). I had, in effect saved them more embarrassment by keeping the customers who'd booked happy and was very understanding about the situation which was short notice and very inconvenient for me.

I asked on them by email on 20 March if they could, due to pandemic, pay the money owed into my account. They asked me to wait until 'things we're back to normal' and then various emails in June and July where mostly not replied to due to the events managers furlough and only one was replied stating the payment should be ok within a week or so as events managers furlough was due to end.

As of Friday all of this cinemas UK venues will be closed. They're saying temporarily and personally I would think they is an 80% chance they'll come back again perhaps mid 2021. I could probably stomach losing the £1250 if it meant we still had a long term business relationship as Id make a lot more in the long term.

Nevertheless, I drove a round trip of 4 hours to the venue on Monday only to be told that the cash which should have been in the safe for me was no longer there with no explanation offered.

I then dashed to my car to get the laptop and forwarded the email correspondence and the venues own sales report from February to the General Manager who's sent them on to 'customer care' at head office. Ive asked him twice now for a contact there to follow up wiht but as yet no reply to him.

Not sure whether to issue a letter before action via a lawyer or even go to London with a solicitor with me (at a substantial cost) to demand immediate payment. Alternatively sit it out, hope for the best, and if the chain does come back there's every chance that this comedy club (which has been running there now for around 20 years) will be back in business and after 6 months of shows £1250 will seem a price worth paying.

Advice anyone?

Thanks for your help.

 

[simon field]

At the end of the day they're using your money to fund their business.

I'd issue an LBA.

 

[paulears]

My band has discovered over the years that promoters or venues that pay in cash are paying you from surplus funds, before they declare and bank them. I bet they also don't give you a VAT receipt, ignoring your VAT status as if they do it properly, then a proper paper or electronic system will do this automatically. I'm pretty sure that payment by cash probably comes from the bar takings, or food money. In dealing with incoming acts, the few that always asked for all or a proportion in cash have largely gone away now. Nobody really wants large amounts of cash.

 

[Darren_Ssc]

Solicitor's letter is going to cost you £300 and will not put you any further forward.

Waiting it out may be your best bet since action in small claims is going to be subject to delays and extra cost you can't afford right now.

 

[simon field]

Solicitor's letter is going to cost you £300 and will not put you any further forward.

Blimey, more like £35 round here.

Thomas Higgins £10.

How do you know they won’t cough up at the threat of legal action?

 

[Red Wood]

LBA then when they inevitably don't pay, start the CCJ process through money claims online. Write the debt off as bad at that point as you'll likely not see the money again I'm afraid. One of those things.

Thankfully there isn't an extra digit on that amount, it could always be worst...

 

[UKbusiness2018]

So if go LBA route who should I address it to? The venue? The Customer Care Department? The Chief Executive of the Cinema Group?

 

[simon field]

So if go LBA route who should I address it to? The venue? The Customer Care Department? The Chief Executive of the Cinema Group?

Whoever your contract is with.

 

[Big G]

Sorry to hear about your situation here.

I completely agree you should follow this up starting with a letter before action and, from what you have said above, it should be addressed to the specific cinema in question and copied to their head office. The letter needs to detail your claim including when and how it was incurred. You should also place them on notice that you intend to take further action if they do not pay with 7 days and this further action will incur additional costs & interest being added to the balance.

 

[Darren_Ssc]

LBA then when they inevitably don't pay, start the CCJ process through money claims online. Write the debt off as bad at that point as you'll likely not see the money again I'm afraid. One of those things.

Thankfully there isn't an extra digit on that amount, it could always be worst...

Have you considered the possibility that the OP may need some goodwill from this customer in the future? I have an action against someone who damaged my car going back to last November, still no court date has been set.

He's also got to fork out court fees, a hearing fee, a day off work and more hours in work preparing his case than the amount owed justifies?

Read what he says, anyone who's been through a MCOL before will run rings round him.

 

[Bob Morgan]

Is this the same Cinema Chain that had their staff buy the 'Pick and Mix' before they were informed by Text/Fakebook/Twitter that they were all dismissed? - Put that in to the perspective of doing things 'Properly!'

Although, I do know a rather useful man in Fulham!

 

[Mark T Jones]

I would certainly go with LBA followed (promptly) by LBA

For a small sum, they might just pay you to get you out of their hair - but being realistic, prepare yourself for a slow process and potentially not to be paid.

There is no goodwill with a non-paying customer, especially one who doesn't communicate or compromise.

I'm assuming @Bob Morgan is being tonue in cheek with his 'man in Fulham' -but trust me, it's a sticky path to travel.

 

[simon field]

Have you considered the possibility that the OP may need some goodwill from this customer in the future? I have an action against someone who damaged my car going back to last November, still no court date has been set.

He's also got to fork out court fees, a hearing fee, a day off work and more hours in work preparing his case than the amount owed justifies?

Read what he says, anyone who's been through a MCOL before will run rings round him.

Goodwill goes both ways no?

A customer who doesn’t pay for what they’ve had is more akin to a thief than a customer.

MCOL is easy, cheap & often effective early on. Spurious defences are seen through.

No messing about!

 

[Darren_Ssc]

Goodwill goes both ways no?

A customer who doesn’t pay for what they’ve had is more akin to a thief than a customer.

MCOL is easy, cheap & often effective early on. Spurious defences are seen through.

No messing about!

Just seems to me that this guy is struggling with a loss of £1,200 so principals go out of the window. MCOL is a lengthy process at the best of times and more so in the current climate.

 

[Alison Moore]

Could you just contact head office first and speak to them first. I know the local branch haven't given you a contact, but you should be able to track down the accounts person there. If the local branch isn't paying, it could be that the head office doesn't even know you're owed anything. If no luck with the head office then yes your next step would have to be legal action. The cinema chain might well go bust soon, so the sooner you get it sorted the better, otherwise you'll just join a very long queue of creditors.

 

[Financial-Modeller]

...I forwarded the email correspondence and the venues own sales report from February to the General Manager who's sent them on to 'customer care' at head office. Ive asked him twice now for a contact there to follow up wiht but as yet no reply to him...

Why did the GM send your invoice to his Customer Care department?

Given the precarious future for cinema chains today, I would ensure that your invoice and any correspondence from the cinema agreeing to pay it, is sent to the GM and at least one member of the board of any parent / Group in the hope that in the event of liquidation, liquidators can add you to the (probably long) list of creditors.


Edit: hadn't seen @Alison Moore's similar suggestion whilst I was typing this.

 

[The Byre]

My band has discovered over the years that promoters or venues that pay in cash are paying you from surplus funds, before they declare and bank them. I bet they also don't give you a VAT receipt, ignoring your VAT status as if they do it properly, then a proper paper or electronic system will do this automatically. I'm pretty sure that payment by cash probably comes from the bar takings, or food money. In dealing with incoming acts, the few that always asked for all or a proportion in cash have largely gone away now. Nobody really wants large amounts of cash.

THIS!

This cinema chain is going to go under. The money is almost certainly gone. If you want your money, you might try contacting @smallclaimsassistance of this very parish, but my bet is that you will be whistling Dixie.

Chalk it up to experience and be there on the night the next time. Even giant acts that cost millions like The Rolling Stones get half up-front and the rest on the night (as a cashier's cheque). Chasing money after the event is a PITA and takes forever!

 

[Mark T Jones]

LBA costs virtually nothing and might work

1. Follow @Big G ’s advice
2. Be sure to make your claim to the absolute correct legal entity
3. Send - preferably signed-for to both your contact and the company or group MD/FD
4. Follow up exactly as per your letter - this is critical to the process!

If you are struggling with 2 or 3, drop me a line and I will try to help

 

[STK Finance Limited]

You could serve a statutory demand on the company if they do not dispute that they owe you the money. They will face having to pay or being would up within a couple of weeks.

 

[STK Finance Limited]

Sorry meant to say ‘wound up’! iPhone predictive text

 

[UKbusiness2018]

**update**
Firstly thank you so much for all your replies - much appreciated

In turns out that the GM was an actually on annual holidays and only came in once the Monday to fight fires etc so no replies on Tuesday and Wednesday were because he was back on holiday which I was not aware of and so feared the worst!

Anyway he was in touch at 9am today to say money owed is all agreed with head office etc and will be paid by BACS within 14 days.

I was very very close to sending the LBA but it appears on this occasion I made the right choice (for once - haha!). So the relationship is intact and personally I think the cinema chain will be open again probably summer 2021.

So happy result and happy times ahead!

thanks again everyone

 

[AllUpHere]

**update**
Firstly thank you so much for all your replies - much appreciated

In turns out that the GM was an actually on annual holidays and only came in once the Monday to fight fires etc so no replies on Tuesday and Wednesday were because he was back on holiday which I was not aware of and so feared the worst!

Anyway he was in touch at 9am today to say money owed is all agreed with head office etc and will be paid by BACS within 14 days.

I was very very close to sending the LBA but it appears on this occasion I made the right choice (for once - haha!). So the relationship is intact and personally I think the cinema chain will be open again probably summer 2021.

So happy result and happy times ahead!

thanks again everyone

Don't count your chickens. 14 days is a bloody long time when you are waiting to see if someone pays. I hope you get it.

 

[Michael Loveridge]

You could serve a statutory demand on the company if they do not dispute that they owe you the money. They will face having to pay or being wound up within a couple of weeks.

There's no point issuing a Statutory Demand, as because of the Corporate Insolvency and Governance Act 2020 you can no longer issue a winding up petition on the basis of a Statutory Demand, so it's an empty threat.

As has been said, your best bet is a LBA, followed up by a small claim. The chances are that they will be too disorganised to file a defence, so that after 14 days you can get a default judgment.

They'll probably pay on receipt of the judgment, as they won't want it on their credit record, but if they don't then sending the bailiffs to their head office to enforce the judgment will get you your money.

 

[Michael Loveridge]

Oops, sorry, I'd only seen page 1, and hadn't noticed your post saying you'd arranged for payment. Anyway, hopefully the advice will be of use if they don't pay!

 

[UKbusiness2018]

Just to let you know that I got paid , albeit a few days later than promised, but without having to resort to an LBA etc. Thanks again for all your help.