Business Lease Termination (Pub) Advice

[Eddh]

Is there anyone kind enough on PH to give me a bit of advice about terminating a lease for a pub, there is 19 months remaining of a 5 year lease with a private landlord, not tied to a brewery such as punch or green king etc. Standard story of struggling business that can't keep up with the rent and associated costs.

If there is anyone that would be able to help and I could PM I'd appreciate the advice a lot, its not for me but I know most of the particulars about the business so can provide more through PM.

[anonymous-user]

Is the lease in the landlord's name, or if not, did he give a personal guarantee?

[Eddh]

Thanks for your reply, the lease is in the name of the LTD company that operates the pub (they're the sole director), there is a 6 month personal guarantee.

[anonymous-user]

Eddh said:

Thanks for your reply, the lease is in the name of the LTD company that operates the pub (they're the sole director), there is a 6 month personal guarantee.

First port of call is to speak to the landlord to see if they will be flexible.

If no joy, then he is on the hook for 6 months. If he thinks the Ltd Co is insolvent he should speak to an Insolvency Practitioner sharpish.

[Eddh]

desolate said:

Eddh said:

Thanks for your reply, the lease is in the name of the LTD company that operates the pub (they're the sole director), there is a 6 month personal guarantee.

First port of call is to speak to the landlord to see if they will be flexible.

If no joy, then he is on the hook for 6 months. If he thinks the Ltd Co is insolvent he should speak to an Insolvency Practitioner sharpish.

Thanks, is there any that you would recommend? What are the likely costs involved for an IP?

[anonymous-user]

Eddh said:

Thanks, is there any that you would recommend? What are the likely costs involved for an IP?

His accountant should be able to advise.

I would think a few k.

Either way if the Ltd Co is insolvent then he needs to do something. Generally, the earlier you face the music the better it is.

[Thankyou4calling]

Ltd company can be dissolved but it takes three months.

PG usually means A personal garuntee has been given to the landlord to pay all liabilities due until such time as.

Where is the pub located?

[Eddh]

A few K is probably manageable, thanks.

Is there any way that the landlord could go after personal assets/cash to repay any rent arrears from the LTD? Would they as an individual be responsible for the remaining 19 month lease or would declaring the business insolvent take care of this?

[Eddh]

Thankyou4calling said:

Where is the pub located?

South Wales.

[anonymous-user]

Eddh said:

A few K is probably manageable, thanks.

Is there any way that the landlord could go after personal assets/cash to repay any rent arrears from the LTD? Would they as an individual be responsible for the remaining 19 month lease or would declaring the business insolvent take care of this?

It really does depend on what the PG says.

This will be the key to the matter.

[Thankyou4calling]

PG generally means liability for all terms as set out in the lease.

[Eddh]

I've had a look through the lease and there is quite a lot in there about Guarantors, can I PM you a copy of the relevant bits to take a look at? Would be useful to hear someone elses view on it.