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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Took over bride shop on 16th april - there are 24 dresses (which

Customer Question

took over bride shop on 16th april - there are 24 dresses (which were sold before we took over) which the previous owner took 50% deposits for and has banked and spent that money - the other 50% is due to be paid 12 weeks before the wedding and out of that you pay the supplier for the dress and anything left over is profit - we did not know about these dresses - we have now found out about the dresses and also found out the supplier has gone bust - so we have 24 brides who have paid the previous owner £16500 - we have no chance of getting the dresses and the brides are going to demand their deposits back - who is liable to pay their deposits back? - is it us or the previous owner who sold the dress and entered into the contract with the bride, took deposits, banked the deposits and spent the deposits - can you please advise?
thanks colin.
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Hello my name is ***** ***** I will help you with this.
Was it a Ltd company? Did you have any contract with the old owner please?
Customer: replied 2 years ago.

no she was a sole trader and there was no contract

Expert:  Ash replied 2 years ago.
You took over all assets and liability as a going concern?
Customer: replied 2 years ago.

yes

Expert:  Ash replied 2 years ago.
Its bad news I am afraid to say. As a business you are liable for the refund, whether or not it was given to you and whether or not it has been spent by the previous owner. Sadly you are liable to pay these sums back, but you can claim back those sums paid from the previous owner.
You need to write and set out your losses and request a refund within 14 days or say you will go to Court within 14 days. You should make sure you send this signed delivery and keep a copy.
If they do not refund you then you can issue proceedings in the County Court. You can either do this online at: www.moneyclaim.gov.uk or by completing form N1 http://hmctsformfinder.justice.gov.uk/courtfinder/forms/n001-eng.pdf and take it to your local County Court.
The Court will then issue a claim which a copy will be sent to the Defendant who will have a limited time to defend it, if not you can enter Judgment and enforce.
If the claim is for £10,000 or less it will be a small claim so you will not need legal representation. Over this value you would need representation for trial.
Can I clarify anything for you about this today please?
Expert:  Ash replied 2 years ago.
Hi

I am just following up to see if there is anything else I can help with?

If this answers your question might I ask you to rate my answer before you go today please, the button should be at the bottom of the screen.

If you need more help please click reply.

Alex