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UK-Justice
UK-Justice, Barrister
Category: Law
Satisfied Customers: 16193
Experience:  Called to the Bar in 2007
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We have a three year tenancy agreement with brewery in which

Customer Question

We have a three year tenancy agreement with brewery in which need to give 6 months notice, our next notice date is 18th March 2013 wuth end date 18th September 2013.
The pub has made no profit in the last 11 months and we cannot continue trading as our debt is now £33,000 and our biggest creditor HMRC is treatening to bankrupt us. The brewery has taken no rent from us for the past 5 months to try and help the trading situation. We have exhausted all our personal savings to keep the business open during the past year.
What legal options do we have to close the business.
Submitted: 3 years ago.
Category: Law
Expert:  UK-Justice replied 3 years ago.
Thanks for your question, I will do whatever I can to help you. Please remember to rate my answer SMILEY FACE OR ABOVE.

What is it you want to achieve?
Customer: replied 3 years ago.

We need to close the business without incurring court expenses and without losing any more money.

Expert:  UK-Justice replied 3 years ago.
What does the agreement say about termination?
Customer: replied 3 years ago.


It states that we have to give 6 months notice:


 


Your right to end the Tenancy


You may end this Tenancy by giving us written notice on the sixth, twelfth, eighteenth, twenty fourth and thirtieth month anniversary of the Term start date 19 March 2012 and this tenancy will end on a date not less than six calendar months after we receive your notice.


You may only bring this Tenancy to an end under this caluse if you are up to date with your payments to us and are not in material breach of any of your obligations to us, both at the time that you serve the notice and upon expiry of the notice.


 


Our right to end the Tenancy


In this section there is a clause 'If you become insolvent' but we have been told that we are not insolvent as the brewery fixtures and fittings are worth £13,500 and my car etc would be taken into this equation.

Expert:  UK-Justice replied 3 years ago.
Are you ltd or sole trader?

Is the lease in your name or co?
Customer: replied 3 years ago.


We are partnership and the lease is in both names:


 


Mr Graham Peter Hughes and Mrs Jill Hughes

Expert:  UK-Justice replied 3 years ago.
Do you want to avoid the 6 momths?
Customer: replied 3 years ago.


We will pay the rent for 6 months if necessary but cannot afford to trade as pub. Brewery are saying we have to trade until our tenancy ends but we have no money to do so, as everyday we are open costs us money in utilities etc.

Expert:  UK-Justice replied 3 years ago.
Does the agreement state you have to trade for this period?
Customer: replied 3 years ago.


I have read the agreement and can find no mention of having to continue trading but it does state in Business Obligations:


 


you must conduct the Buisiness from the property for the minimum trading hours each day.

Expert:  UK-Justice replied 3 years ago.
Then you don't need to trade.

Unless the contract states you are required to trade then they can not enforce it,

Clearly you will be liable for the 6 months but not to trade,

If they refuse they you can ask what provision in the contract they are relying on

The contract is binding and contains all terms and conditions.

If there is nothing in the contract that says you must trade then you don't need to, the notice is enough

Do not be bullied.

I hope this helps.





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Expert:  UK-Justice replied 3 years ago.
I'm just following up with you to see how everything is going. Did my answer help?

UK-Justice

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