Help Please.

[DGK]

Me and a friend started a limited company last year. We were selling sportswear. We made one 5k order, we made a part payment of £1000 and then I broke my neck and everything fell to pieces. We now owe £4000 and they are taking the company to court. The geniune reason we struggled to sell the items and pay the guy back is due to the fact we placed a larger order than we expected to because we wanted to cash in on the xmas rush. Despite them promising a 6 week turnaround which would have given us a two month run up to xmas they showed up two days before xmas, so we as good as missed xmas retailing. Secondly the goods were not as per design so all our marketing materials were useless. The garments were also of pour quality. I don't know if the last three points make a difference or not.

We sent the guy 8 post dated cheques (one per month) for £500 each, he has rejected these. What are our options? the companies assets are pretty much the order itself.
Thanks

 

[Shimano105]

How's the neck, Gavin?

 

[Shimano105]

poor

 

[wendigo100]

What were they contracted to provide?

Why didn't you return the goods as not to spec, or cancel the order when it got too late to shift them before Christmas?

 

[Clog II The Avenger]

2nd company

2nd company

Set up a 2nd limited company6. Sell your stock to the second limited company for a knockdown price. Dissolve your first company that a the debts., The debts and taxes will be written off.

 

[eternalnomad]

Despite them promising a 6 week turnaround which would have given us a two month run up to xmas they showed up two days before xmas, so we as good as missed xmas retailing

Was the "6 week turnaround" a condition of purchase on your purchase order ?

Secondly the goods were not as per design so all our marketing materials were useless. The garments were also of pour quality.

Did the purchase order specify certain features or attibutes - how are you defining pour [sic] quality ?

 

[DGK]

Is it easy to dissolve the company? I'm looking into it at the moment but if anyones done it and lived to tell the tale I'd be interested to learn how you went about it.

The neck's fine buddy, get my scaffolding off Thursday.

I didn't send the gear back as it actually looked better than the original design.

 

[privateeye]

As far as I can see from your post the supplier has breached contract by lack of quality, late delivery, and not to spec. If thats true and no reason not to believe you I would tell the supplier where to go.

 

[DGK]

There was no purchase order, this was just a verbal aggreement between us and him. In fact the deal was that we paid as and when we sell the goods, he now denies this. There is nothing in writing to support either case.

Poor Quality, the lables were fraying on 50% of the garments and the screen printing was substandard.

 

[Clog II The Avenger]

As far as I can see from your post the supplier has breached contract by lack of quality, late delivery, and not to spec. If thats true and no reason not to believe you I would tell the supplier where to go.

Unfortunately if this goes to Court; it is a lottery of whom you get for a Judge. I have known several cases where really dodgy supplies that have lied, cheated, and supplied crap goods to retailers and the innocent party has lost the case. Dissolving a limited company is easy but it is better to start-up or purchase other companies before hand. Some people I know are having twenty to thirty companies running at the same time with turnovers of around £10k per year for each company. Spread your risks. Have one limited company for buying the goods. Have another limited company to own the lease. Have an offshore company to do you consulting. Spend all of your profit on consulting. Have you AGMs in the Caribbean.