Closing business and trying to get out of lease.. will be insolvent within a month

Discussion in 'Insolvency' started by bobert1975, Mar 7, 2020.

  1. bobert1975

    bobert1975 UKBF Newcomer Free Member

    3 2
    Hi

    I currently own a store, it was a corner shop when we took it over, and we changed it to a CBD/vape type store. Unfortunately in this area it did not do well and it was decided to revert it back to a corner store.

    As a corner store it was doing well, but not as much as I would like from issues such as staff being on extended sick leave, and costly improvements were required to the building/ repair etc and so. Really the shop is only half finished and has room for much improvement where I feel it can make a good profit (it was one before for 20+ years but was owner operated who then retired) but I have no interest any more in running it, dealing with the staff issues and while doing a relatively well paid full time job.

    As it stands the landlord wants me to sublet it to people who are interested in taking it over, which I do not want to do, and to extend my own lease if they want to keep it longer which makes no sense to me at all while they could just agree to their own new lease.

    Otherwise by the end of the month the business will go insolvent and there is no guarantor of the lease agreement.

    Any help on what my options are here?,

    Many Thanks - Bob
     
    Posted: Mar 7, 2020 By: bobert1975 Member since: Mar 7, 2020
    #1
  2. KAC

    KAC UKBF Ace Free Member

    1,163 261
    Is the lease to a limited company?
     
    Posted: Mar 7, 2020 By: KAC Member since: May 7, 2017
    #2
  3. bobert1975

    bobert1975 UKBF Newcomer Free Member

    3 2
    Yea its to a ltd, there is nothing in my personal name
     
    Posted: Mar 7, 2020 By: bobert1975 Member since: Mar 7, 2020
    #3
  4. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    11,478 2,366
    Then the most important thing is what ever the lease states about dilapidations
    You must have a very nieve landlord
     
    Posted: Mar 7, 2020 By: Chris Ashdown Member since: Dec 7, 2003
    #4
  5. KAC

    KAC UKBF Ace Free Member

    1,163 261
    As @Chris Ashdown has said "Naive landlord" :)

    Would still suggest speaking to a lawyer about your company surrendering the lease amicably.

    If the company becomes insolvent, you should cease trading.
     
    Posted: Mar 7, 2020 By: KAC Member since: May 7, 2017
    #5
  6. MBE2017

    MBE2017 UKBF Ace Free Member

    1,730 591
    Any personal guarantees?
     
    Posted: Mar 7, 2020 By: MBE2017 Member since: Feb 16, 2017
    #6
  7. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,488 436
    Are there any other liabilities in the Company?

    Are there any assets in the Company?
     
    Posted: Mar 9, 2020 By: Lisa Thomas Member since: Apr 20, 2015
    #7
  8. bobert1975

    bobert1975 UKBF Newcomer Free Member

    3 2
    Its all sorted, she has agreed to now terminate our lease and create a new lease with the new tenants.
     
    Posted: Mar 9, 2020 By: bobert1975 Member since: Mar 7, 2020
    #8