Advice from shop owners

[andy b]

Hi there,

this is the sort of question that niggles away at me where i should be focusing on the bigger stuff but i was wondering what happens to any of the unsold stock that has yet to be paid for,

do i pack it up and take it home or leave everything in the shop which seems a bit unfair on the landlady

regards,
Andy

[MelanieGiles]

Hi Andy

Could you clarify exactly what stage you are at the IVA process, and what advice your own IP has provided you with regarding dealing with unpaid items.

[andy b]

Just the initial(forum) stage at the mo

[MelanieGiles]

OK - if you cease trading and have stocks left which you have not paid for, you need to consider whether the suppliers have retention of title provisions in their trading conditions. If they do, then they may have the right to collect the goods in lieu of their unpaid accounts. If not, then the Sale of Goods Act applies and title to the goods was passed to you upon their delivery.

Is there any value in the stock? And what type of business are you running?

[andy b]

Any unsold stock would still belong to the suppliers. I have a small gift shop so most of my invoices are in the £200 to £500 bracket or at least they will be come december.

[andy b]

just bumping this one for Melanie or anyone else that could help with the finer points.

I'm just at the initial stages of considering future action but i'm hoping xmas will bail me out but if not i would like to be more prepared.

thanks
andy

[MelanieGiles]

I have dealt with a few gift shops in my time Andy, and if you can trade through past the Christmas period, perhaps with a closing down sale in the last week when people are rushing to find bargains you could maximise the realisation of your stocks.

But do be careful to ensure that the monies you make are set aside to pay eventual creditors, or you will be open to criticism from the creditors for converting stocks you do not own into cash which is not shard with them.

Perhaps you ought to have a chat with an insolvency practitioner to check that your proposed strategy is not likely to prejudice anyone.

[littleted]

Hi Andy

Have a similar business myself and am now in an IVA.
I know how tough it is, if there is anything I can do to answer any questions, however frank please ask.
All the advice I would give you without knowing any details, is that if you feel that things are getting to that point then please seek professional help- as there is a solution and you need specialist advice being a business. Sometimes there is an answer, you just need pointing in the right direction.

[Soulgrowth]

Just wanted to wish you good luck Andy. I had a gift shop and it took me more and more into debt. Such luxuries as gifts are the first thing that people stop buying when things start to get tough. My daughter managed to sell a fair bit of the stock on eBay.

How would you like to approach a solution to your debt Andy? Is your retail premises a lease, in which case have you thought abut how you might best deal with this?

All the best

Debbie