In 18 months I've gone from solvent to almost broke - need major HELP!

tourette_t-shirts

One thing i always like in a pub,espicially a country one i an open fire(thats lit!!) wod cna be free from trees around the pub too!


Also would it be worth re-doing the food menu? Get the missus in the kitchen cooking lovely home cooked food!

Have you got the maximum amount of games machines/fruit machines in the pub?

What about a curry night/stak night etc....

Sorry i cant really help but thought i would throw these into the mix.

Good luck.

downhillfast

First of all thnks everyone for your interest and suggestions. Now to answer a few of those questions...


I can re-assign the lease if I can find someone to have it.... it's on a go slow at the mo because I don't have the money to give the brewery to do their "schedule of dilapidations" or instruct their solicitors - basically I have to pay all of their costs - circa £1500!!!

Re my GP - I have always been told that the bar is on target at 50% so have stuck wih it to remain as competitive as possible with my competition - I am already the most expensive by a few pence on most things so have to be careful.

I have also tried marketing to specific groups of clientele such as the elderly or parent toddler with no take up of the offers whatsoever...

We do get a core clientele but loyalty is almost nil as I share most of them with the pub up the road - and generally speaking if we go head to head with putting on an event they get most of my punters... even though my ideas are far superior!!!
Hence I get a bit annoyed when we advertise an event and then the other gaff put on something at short notice!

At the moment I only have one member of staff who takes home £750 a month and a casual washer upper at about £30 a week. T/O at the mo is about £2800 a week inc VAT.

I do have regular stocktakes - monthly generally but had to miss the last one as I had no money for it.

Monthly wastage is circa £350 - which include driptray and line clean. Very little ever gets "wasted" unnecessarily.

I have cut down the amount of products to reduce waste... now have 3 taps disconnected. Carry very little stock... to reduce the capital tied up in it.

The main problem with the place is overheads versus trade. We are a relatively big, open, bright pub with few customers most of the time!

More later - just finishing the line clean!

chevalier

I am really sorry that this hasn't worked for you. I would suggest you give the business debtline a call (if you ask on Mike St Heliers bankrupty thread, they should be able to give you the number). They will go through the bankruptcy idea with you.

As you have no equity or assets except the pub I would assume that most of your debt would be written off. I also don't know whether you would have to do a personal bankruptcy, and a company bankruptcy.

hope this helps
chev

downhillfast

Well after 2 hours on the phone I think I am begining to see the wood for the trees. (I say think! )

Phoned Egg cos they had sent me a letter about my DD being cancelled and that I needed to give them new bank details.... phoned them and they basically said that because the account is in arrears that I had to speak to their collections dept (they were very nice about it though!)

Having spoken to them at length about my income and expenditure and told them that Payplan couldn't help me they suggested I contact CCCS. I did that and they have aranged an appointment to talk about my personal debts - they can't deal with business debts. They did however give me the number for Business Debt Line (how spooky that the post I read when I log on here suggests the same - I'd never even heard of it until an hour ago!)

Having now spoken to BDL they say that they have to deal with both types of debt at the same time - afterall I am self-employed so the business is me liability wise!

Anyway, after a very long chat with a very friendly informed chap I have reached the following conclusion...

WORST CASE SCENARIO ISN'T MUCH BETTER THAT BEST CASE SCENARIO.

Worst case scenario - I declare myself bankrupt and let the Official Receiver sort out the mess and pay the creditors from the sale of the business. While I get my head around how to rebuild a career and life outside o this money pit. Yes, I will have a worse than carp credit rating and terms and conditions to operate my finances by.... but at least I will have time to do work that pays some money! - The preverbial "clean slate" albeit with the big black mark of bankruptcy.

Best case scenario - I get a full asking price offer for the business tomorrow.... we exchange within 1 month (unheard of!) and I come out with just enough money to pay my creditors and maybe have a weekend in Skeggy (no offence Skegothians! )

Most likely scenario - If I don't take action now..... Debts continue to mount up... postman develops chronic back problems... I have a nervous breakdown and start researching suicide methods on the internet and then someone else files for my bankruptcy and things get really messy???

So what would you do?

Obviously at the end of the day it is my decision alone to make.... but I wouls like to see some other take on the situation


:beer:

mjdh1957

I've not read the whole thread but enough to see your predicament.

Funny (in the sense of strange rather than hilarious) how people imagine running a pub is a great career and how often it seems to be hard work and no reward...

I'd say go for the bankrupcty and treat it as being the best option. You get a chance to write off the debt and start with a clean slate. Get yourself a good full-time job and start rebuilding your life. At least by taking the first step yourself you're not being made bankrupt by someone else, which is likely if you just let it ride.

A good mate of mine ran a bar/restaurant that he sank a lot of money into. It had to close in the end and he struggled for a couple of years to try and pay off his creditors. In the end, he decided to go bankrupt and he said it was the best thing that ever happened to him. He then started work in a jeweller's shop and loves it...

Good luck!

misspoppy

Hi

I've been watching your thread for a while and I really feel for you. I think the main thing is that you come out the other side with your sanity and so I think you should concider the bankruptcy route seriously. As your most likely senario states its just a matter of time.

I think in the begining you speculated that this pub was a bit of a black hole and hadn't worked for a number of people, this isn't a reflection on you though. I'm really sorry your dream has come to this but some times you've just got to break free.

Good luck

downhillfast

Well, it's a lovely day - a tad chilly, but crisp and fresh.

After an alright night's sleep I've got up this morning feeling pretty positive about life - not the pub - just life itself!

Have spoken the GF about my thoughts and direction I'm swaying towards... it didn't go down well to start with - she see's it as a bit of a get out I think. She also is having a very hard time financially at the mo - owes her parents £560 a month loan repayment that they took out for her on the spur of the moment to help clear her debts.... it's actually put her in a worse position because it's not her debt now but she's still paying it with no unemployment cover or connection to her situation. Should she enter into a DMP for her remaining debts would it be covered???

Although I don't know the exact figures cos she's still burying her head in the sand to a certain extent I think her total personal debt is in the region of £40k - racked up by her previous partner whilst on the sick. Working again now and a compensation payout is due but she's unlikely to see any of it. He walked out of the relationship with only £5k debts!!!!!!! A bit sickening really.

So, anywhoo that's our situation!

Needless to say when I was telling her about thoughts of declaring myself bankrupt - major panic has set in with her.... between us we'd have VERY little to live on and need to move house when I'm out of the pub. Deposit, month up front... blah blah blah. Living with parents not an option as hers do not entirely approve of her relationship with me and if we moved in with my mum that would be like her having a go at her mum apparently!

Oh what joy!!!

Nonetheless I am feeling good today and ready to get stuck into moving my life forward again.


:T

bobsa1

Just read your thread. Can't offer any help but sending best wishes. At the moment we have temp cash flow problem with our business and it's driving me mad so I can see how you feel.

Best of luck

tourette_t-shirts

Sod upsetting her mum,you need to sort your debt out and if you upset her mum so what!!! Its better than being homeless!!!

By the looks of things going bankrupt is best for you.Once you have done that start from scratch.Go back to your old trade and if you hae to start from the bottom and work your way up.Re-build your life and eventually your credit rating.

By going bankrupt you will have piece of mind a life that isnt lavish but is a million times better than what you have now plus you will be able to spend time at the other side of the bar!!

Get the ball rolling ASAP to stop further debt building up and start enjoying life again.

I cant stress how that although you will be on far less money than you were before you went in to the pub trade ,you CANNOT carry on as you are and although you may be going on rubbish holidays,have a rubbish car and living with your mum.Im sure its better than wat you are going through now.

You have been in my thoughts the last few days so please keep us informed on this thread!!


All the best

downhillfast

Well what a day it was yesterday... after all the positive feelings of the weekend, yesterday was meltdown day. Spent the whole day unable to think straight and traumatised.

It doesn't help that I think I've got a cold/flu on top of all the stress and self pity.

Today is a little better, in that I manged to get out of bed! Haven't achieved anything yet today though. Have just downloaded all of the forms for bankruptcy and now I guess I'm just stalling a little regarding filling them in.

Thanks everyone for your kind words over the last few days... believe me it has made a big difference knowing that at least some people out there understand and are not judging me.

:A