advice and help..closing down or sale

[kween]

My business (a limited company) is closing due due to poor economic times and pretty much nil profit, plus not having the time to put into it.

However we were approached by a client who was interested in the business and pretty much happy to take all business assets, fixtures etc, minus the lease recently, four weeks before closing. The client is going to sort out the lease side herself with the landlord which i assume is in progress.
Now the business entails employees etc, which the client is happy to take on also. A business sale contract which is sorted and awaiting the return of it.
Now as we now, people/clients can pull out right at the end sometimes, messing things up completely.
So there has to be a safenet in place, as Ive had someone pull out before.
I'm unsure to tell the employees/staff, as to whether someone will take over or we have to close down and I assume I will have to make them redundant and pay them redundancy also, as even I dont now what will happen.
Please can someone advice, as if the sale doesnt go through then we will close down and if it does, the business will transfer and continue to run as usual. Just telling the staff is scary.
What if there is no money/profit in the bank, how can I pay these employees their redundancy pay?
Im quite concerned, please advice... Whats the best way around this.

 

[arcon5]

If a company cannot afford to pay redundancy pay then afaik there is a government pot they can apply for.

If you can't afford to pay their wage or redundancy then there's not really much you can do about it. They will be a creditor, although I believe they might be nearer the top of the hierarchy governing who gets priority over whats lefts.

 

[Spearmint]

If the sale of the business does go through there could be another headache to worry about called TUPE.

I don't know anything about it myself but I understand that this kicks in where a business is sold and there is staff involved. It may not be your problem but it could be for the company that take your staff over, but you ought to check it out.

 

[kween]

Thank you all for your responses.

Yes Tupe is another ball game, as long as the staff are aware and understand that their existing contract is continuous and is transferred over, thats the main thing.
The terms and conditions remain the same i guess.

Ive got enough to pay their monthly wages, but redundancy pay will be a problem. So govt pot it is I guess.