Ltd Company Closure after death of husband...help needed asap please!!!

Shelley7t8

Hi all,

I hope someone can advise me, i cannot seem to find the answer to this anywhere!

My husband passed away a few weeks ago. He was sole director of his business. Unfortunately during the last few months of his life when he became very poorly and unable to manage the company effectively a few debts built up one of the main being business rates.

I have spoken with the council today who have advised me that the full amount (£16k) is due within 5 days or they start to take anything of value within the business (its a pub). The guy that came was really nice and said in the circumstances if he was me as the debt is in the name of a ltd company he would just close the company.

How do i do this??? The pub company we are with have said they are happy to transfer the lease into my name if i want to continue to run the business but i havnt made a decision about this yet as i needed some time to get my head around the loss of my husband before i make any big decisions about my future (i have my own job and wasnt involved in the running of the pub). I feel like i dont have time now to decide as i only have a few days to sort out the company.

My friend seems to think that either way i should get the ltd co closed down as even if i do continue with the pub it wont be in the co name and as there isnt a director for it at the moment it cant legally trade anyway.

Can anyone offer any advice please?????

Sarah

Savvy_Sue

First, I am very sorry for your loss: it must be very difficult for you.

And this isn't going to be anything like a complete answer, but I strongly advise you NOT to take any decisions before you have consulted your husband's accountant and solicitor, if he used one. And if he didn't, find one - if you're friendly with any other local publicans see if you can get a recommendation!

Second, I'd advise you not to take any rushed decisions at all, and if you didn't always wish you were running the pub rather than doing your day job, I'd listen to that little voice ... If you don't have strong experience, running a pub is a fast way to lose money.

Wywth

As Savvy_Sue says, take professional advice.

Are you the executor? You'd probably get a lot more money selling assets yourself and settling the bill than allowing receivers/liquidaters to come in and sell at distress sale prices.

If your late husband has been ill for months, who has been running the pub? Surely he employed people to help him run the pub, even before he was ill.
Perhaps they are interested in a management buy-out? (assuming pub company agree)

paddyrg

I totally agree about needing professional advice, but you are feeling rushed and pressured by this 5 day thing. I wonder if you can make an offer of say a grand to the council to stave off their bailiffs whilst you work out what needs to be done? If they see that it's not a case of 'won't pay' maybe they can give you breathing space? Not sure what others here think, but if the debt isn't denied it's going to be discharged at some point in some way.

Once you have bought yourself some time, evaluate the options. If, for instance, your pub is your home, you might be in danger of making yourself homeless, so professional advice is essential. I would say though that in the current climate for pubs, even very competent landlords are struggling. Unless you have a brilliant manager it may be prudent to hand the lease back to the pub co.

This must be a really tough time for you, sorry for your loss.

Savvy_Sue

Those both seem like excellent advice, and we are all agreed on the need for professional advice in this situation.

Just a thought, was your DH a member of the FLVA? Even if not, they may well be worth calling.

There are also a couple of charities who might be able to offer you some support and guidance. Take a look at this - I think there may be another but I can't think of its name atm.

colino

Did your hubby leave a will? He may not, for very good reason, have wanted you to be handed the burden of a pub. I've no doubt that the chain want you (anyone!) to take over the licence to keep it cheap for them, but many long established and experienced publicans are on a knifes edge at the moment. I realise it's difficult but you have to see the separation between your husband and the limited company that he ran and it will need properly administered now.

cavework

Hi ,I am so sorry you are having to deal with this. The debt is owed by the LTD company with one director who is now deceased Therefore the debt is owed by that LTD company ,, not you.
The company needs to be closed down now and handled by your husbands accountant, or the brewery
There is no way the council can remove anything without a court order , so please don't worry and don't give in to threats
The reason the Brewery want you to take over is because you would then be held responsible for any debts.
Please , please take legal advice before you make any decisions .
TC
xx

Brassedoff

I am sorry to hear of your loss.

I am going to be a bit harsh with you. I am doing it to make the action you need to take clear and as soon as possible.

I have handled this type of thing before and for pubs. Some of the advice you have been given is incorrect. You need to do a few things first and do it in order to preserve your income and way of life. You need to do it 9am tomorrow.

1. Do you wish you carry on with the business? Is there family or friends you can rely on to help you make the decision?

A) You intend keeping the business. you wish not to continue

You need to decide on which one you are going to do. Life's cruel, it throws things at you that are sometimes unfair, sometimes not your fault. But in this case you HAVE to deal with it. You risk losing your home as well (I assume you are live in)

A1. Is there a Will? If so does it tell you your husbands wishes with respect to the business? Was he insured, are there any Bank or HMRC issues?

A2. Even if there is no Will, as he has died intestate, you as his wife inherit the shares, thereby the property. You need to decide as shareholder, are you going to continue the business or sell it asa going concern?

A3. You are in a lease, is it the traditional style lease or one of the newer pub leases? If its the older type you have something sellable, subject to the time left. The newer leases have less meat on them and are basically dressed up managed house terms.

A4. If our intent is to keep it, you need the services of a business turnaround specialist. They will enter you not a week long procedure that should, Brewery accepting, see you have a transferred lease without the debt of the old company. 99.9% of solicitors or accountants do not know how to do this, they will only add their costs to the costs of the procedure.

A5. You will come out of it with the business/lease and a new start.

B1. Contact your Accountant and ask them to enter the company into a shareholders liquidation. (It is important that ownership of shares are established, transferred and stamp duty paid before you instruct the Accountant.)

I know you would prefer to think of doing other things, but at a time like this, it's the actions of others who force the issue. Business unfortunately is dispassionate.

Other help just on the pub side of things can be gained from your local LVA chair. Just be careful that covetous eyes are not on your business.