Xerox serving statutory notice

[LPeng]

Hello. I have a problem that I need help with please. We had a lease contract with xerox for 4 telephones and they don’t work so we had to return the phones, they wanted me to pay £20k in termination fees. They served us a statutory notice to make us bankrupt if I don’t pay. My company is 10years old and no where near bankruptcy. It’s very healthy but my solicitor says that they can do this. I don’t understand this seems so wrong that you can close someone’s business that they have worked their whole life for a debt that is not even legitimate. I really would appreciate anybody’s insight on this.
We made them an offer of £10k just to try and stop them and they have ignored our offer. Haven’t even responded to reject it.
I also hear that xerox are closing so not sure if this will even go anywhere, but I am scared they will file the petition and I face losing everything.

 

[Paul Kelly ICHYB]

When did Xerox start doing phones?

Anyway, the devil is in the details and one assumes you have a competent solicitor and they know what they are talking about!

What does the contract say about non working product/services?

If you do not settle and they take you to court, fight it but create a plan to protect you business if the company has issues.

 

[LPeng]

When did Xerox start doing phones?

Anyway, the devil is in the details and one assumes you have a competent solicitor and they know what they are talking about!

What does the contract say about non working product/services?

If you do not settle and they take you to court, fight it but create a plan to protect you business if the company has issues.

Thanks. It was because the phones were made for only the supplier we had before. This supplier breached their contract and we came out, but then no new supplier can take over. Given this is a separate lease, regardless of the fact it was sold by the phone supplier not direct. We didn’t have any defence. We have now had to settle at £15k!
My advice to anyone. Never ever sign a contract with xerox. They are ruthless and have no morals. You only have to look at trustpilot to see.

 

[Mark T Jones]

Thanks. It was because the phones were made for only the supplier we had before. This supplier breached their contract and we came out, but then no new supplier can take over. Given this is a separate lease, regardless of the fact it was sold by the phone supplier not direct. We didn’t have any defence. We have now had to settle at £15k!
My advice to anyone. Never ever sign a contract with xerox. They are ruthless and have no morals. You only have to look at trustpilot to see.

Please can you clarify?

Who chose the equipment/supplier, you or Xerox?

If Xerox sourced or recommended, then you may have a case against them.

If you chose them, then Xerox are just a third party finance provider

 

[Paul Kelly ICHYB]

So Xerox did not supply the product and service - they supplied finance/lease for a product/service supplier?

 

[WaveJumper]

All a little confusing who supplied this that or the other. However Xerox (as far as I know Xerox don't make or supply phones) may well of had a good case, did you stop paying lease etc when the system was not working, what trail of paper work communications have you got to back up a claim. I am also at a loss as to what sort of system ie 4 phones warrants sums of 20k

 

[Lisa Thomas]

Bankruptcy does not apply to Limited Companies. Do you perhaps mean Liquidation? Are they threatening to issue a winding up petition? Have the issued a statutory demand yet?

 

[eteb3]

If the lease was by deed then you have to keep paying: your obligation to pay is separate from their obligation to supply. There are sometimes ways of getting round that but only a solicitor could help, and sounds like they tried.

Same with a commercial property lease, fwiw.