What will they do with my business????

Simpsona

Hi everyone, I know each case is different but I just wondered if anyone has been in this situation with a 'premises' based business? I have a small childrens softplay in a retail unit, the business itself is struggling (makes me wonder why im worried about what happens to it!) The softplay itself has around £30K of debt but our personal debts are over £70K. I realise that when I go BR that the business and personal (sole trader) will all merge into one but what exactly will they do? Will they make me close and take everything? Will they close me for a time so recievers can sell what they can? Will I be allowed to hang on to what they cant sell? (not a lot with any individuall value) Will I be able to re-open if my landlord allows me to stay? We are both in late 30's you see and have no pensions (always thought business investment would secure our retirement) If I cant re-open this business I'll need to start something else once discharged as we need to try and make something work for the future? Think it will be very hard to get another premises after BR though??

So many questions, can anyone help??

Addicted2Chocolate

If you are trading a children's soft play area the OR will definately come out and close you down. Any employees will be dismissed. Everything that you own on the premises will be collected and sold at auction, any perishables destroyed.
It woudl be up to the landlord whether they woud wnat to re-let to you. I have never heard of this happening. But if the business has debts of £30K it must be running at a loss so why would you want to re-open it?
You need to get advice, maybe the Business Debt Line.

Simpsona

The business debts are all for lease hire catering equipment that I dont need. Without the leasehire equipment the business would just about break even on week to week running costs. Guess the reason I want to keep it is that it was 3 years in planning, set up with a lottery win and I painted every wall in there myself, its almost like home and I know that sounds far to emotional for a 'business' woman to say. Our home town has nothing else for children and I was so trying to put something into to our local community. I know its got me into a right mess doing so tho! But having deprived my kids of what I could have done with my winfall I feel if the business goes then it was all for nothing.

Sorry for waffling!:o

Addicted2Chocolate

If you are up to date with rent to the landlord maybe he/she would allow you to re-let. Maybe get advice from Business Line, if you do decide to go BR then think carefully about changes you would make to business if re-started to ensure its profitable, then put proposal to the landlord.
I am a parent of a 2 and half year old, with another on way, I go to our local playcentre at least once a week. I can see why you would want to keep it going, but you have to try separate emotions from business. easier said than done eh?!

fiveyearplan

If it would only break even without the catering stuff it still isn't worth doing unless you can come up with a business plan, marketing strategy that will send you into profit.

I put my life and soul into my last business (reason for BR!) and it is a tough decision when to call it a day.

Simpsona

I know I wish it was easier to switch off the emotions! I have 3 kids (10,8 & 3) I know my main mistakes were just spending too much on the catering equipment, tying myself to much. Also tbh spending a fortune on softplay equipment when the roleplay kitchen for £50 attracts far more attention lol! If I were to re-open I would definately keep it more basic! Doesnt have to be flash for pre-school kids, they have such good imaginations! Landlord may let us stay or may want us out?? Like I say part of me thinks I should just try a different venture but would need a long break to reflect and recharge! Thanks Addicted2chocolate! Great name!!

Simpsona

fiveyearplan wrote: »

If it would only break even without the catering stuff it still isn't worth doing unless you can come up with a business plan, marketing strategy that will send you into profit.

I put my life and soul into my last business (reason for BR!) and it is a tough decision when to call it a day.

I did put a lot into marketing at the beginning and had a great business plan! It just didnt go to plan lol! Ive ran out of energy at the moment to re-push but I think thats because the BR is looming. I know what you mean about putting your life and soul in tho! I'm soooo tired at the minute maybe the right time to let go.

fiveyearplan

I'm relieved my business was shut down for me. I'm glad to be shot of it now and not have the worry. Its nothing to be ashamed of.