Sold my business new owner refusing to pay

[Gingerbread987]

I will be contacting a solicitor, but I’m interested in any insight that anyone might have.

In May last year I found out I was sick and would need time off work to recover, I decided the only way to fully get this time off was to sell my business. The business sold in June.

The business is a limited company and so far the new owner has refused to pay the agreed amount. I know from a mutual friend that the new owner is planning on presenting a list of reasons why they shouldn’t pay. Tbh, I did drop the ball on some of them and I think there’s around £500 in unpaid supplier invoices that I didn’t account for. There’s also a small outstanding loan on this business.

I am prepared to negotiate on these points.

has anyone been in a similar position and has any advice? I’ll be speaking to a solicitor but I’d love to know if anyone else has any experience for context.

Who is running the business at the moment?

I would assume that defaulting on the payments would result in the business reverting back to you. Or that a Court Order would need to be in place creating a payment scheme for them to pay outstanding sums and a date by which this needs to be done. Any profits from the business would need to pay off the amount. If the business has only since made losses it may be difficult to get any money but you could try to reclaim the business name and client list.

Surely you didn’t sign over your business without payment? Why one earth would your solicitor allow this.

If you get free legal assistance with any of your financial products (house insurance /car/ auto recovery or bank acc) I would give them a call and explain the situation and get a view on it from someone who deals with company/ commercial law. That’s a start in finding out where you stand at least and then contact a lawyer who specialises in the area if you want something done.

How much are they owe you?

How easy is it for you to take back the business?