How would I stand

Cuckooclock

I have quite a few items for sale in a local shop, I have heard some rumours that the shop may close after Christmas due to debt.
How would I stand if it did close, all the items are on sale or return & not signed over to the shop & no money has changed hands.
I have been told they will be sold off to pay debts, however I though as they are not their property that couldn't be done. _pale_

ElefantEd

Do the obvious thing: go and get them just before Christmas.

Cuckooclock

Yes that does seem obvious, but doesn't answer my query. Anyone else who knows the law please, in case I get caught out.

Wizzbang

From my limited knowledge on this subject, I don't believe that you would have a leg to stand on legally. Have you just left your stock with them on trust or do you have any kind of written agreement?

If you see here: http://www.moneysavingexpert.com/shopping/company-administration-help you will see the order in which people are paid when a business goes bust. I don't think you would even feature, unless you have categorical proof that the goods are yours and even then, I'm not sure.

It is very bad business practice to operate on this basis frankly, as you can get taken advantage of, whether or not the business goes bust. There are a lot of snakes in business who will take advantage of the green newbies. You really need to get everything in writing, have contracts etc.

If you really are in doubt, then I would seek the advice of the CAB, Businesslink or a solicitor. You might be able to get a free consultation for 30 mins.

I would do as the above poster says and remove your stock ASAP. Or get an agreement in writing in place, stating your terms and conditions.

Cuckooclock

I have got paperwork & so has the shop each item is signed for numbered then put on display. It is a sad situation & lots of local people are involved, I will have to take further advise if nobody here knows, it seems to me I will be making the ship sink even faster.
I am not a newbie just never come across this situation before.

rosie383

A similar thing happened locally here and was thoroughly covered on the local media. It's probably different in that the owner did a midnight flit but people who had stock in the shop lost it all and are unlikely to see a penny of their money.
It's a dilemma as you say you don't want to hasten the end of the business, but do you care enough about them to risk your own? That's what it will come down to in the end. If you keep your stock there and they do go bust then I doubt that even having agreements in writing will guarantee that you dont lose out.

Cuckooclock

Thank you all.
:beer: