Member Since: 6th Feb 2012
10th Sep 2019
I think its relatively easy. Small company with lease on a cafe bar space inside an office building. A director guaranteed the lease but only until the company is liquidated. The freehold of the building changed hands. The previous owner had been forgoing rent as the project wasn't working and he wanted the tenants of the building to still have a cafe offer. They didn't tell the incoming freeholder the full details and just included the rent owing as arrears. The new freeholder discovers the full situation and also agrees to not charge rent. Then 6 months ago he changes his mind and thus there is six months arrears.
The site is not saleable as its not really a profit centre. The landlord is a very fast growing business and does not have the time or the will to deal with it.
Suppliers are all paid up front. Staff paid weekly. No fixed assets as the landlord built the unit and retains ownership.
The Director has supported the business with loans that are outstanding. Landlord now wants £25k in rent but knows he wont get it. Landlord might chase the director after the company is liquidated but thats a different story. There are notes of meetings saying they wouldn't charge rent but that's about all. Not the crux of the case here I don't think.
So just looking for a small insolvency business to wrap it all up. I don't think just filing to strike it off would work.
10th Sep 2019
Thanks - will give them acall although they look a bit big for this case.
9th Sep 2019
It will crystallise a lease and end a personal guarantee issue.
14th Mar 2018
They can be paid as long as its is reasonable and that is what is happening. I just wonder if that stops them from following on in a new round of investment?