On November 1, 2002, I took possesion of a laundromat as a sole propriotor. The purchase price was 40,000.00 cash. Originally this business had been purchased for my retired mother, who has since under gone two surgeries. I signed the sale documents and the lease as Mom was not well at the time of possession. The purchase was based on I thought, sound finances, but have since learned the assets are not worth what I paid. The business has pretty much been insolvent since I took possesion and I listed it for sale in February of 2003. All offers have fallen through due to the bleak financial picture of the business. I understand I should have incorporated the business at the time of the sale, but since hindsight is 20/20, I won't even begin to revisit the "I should haves".
The original property owner with whom I signed the 5 year lease is not the current property owner. The current property owner actually at one point looked at purchasing the business, but pulled out of his offer. At this point I would give the business to someone just to get out of the lease and protect my personal assets.
The business is losing approximately $700.00 per month, which I am suplementing from my personal income. I have no desire to operate this business as I am a successful music educator and professional.
I have my own personal finances under control, but have no desire to continue to subsidize this business and sale of it appears not to be an offerable option. I would like to prevent personal bankruptcy or having my assets seized or wages garnisheed if I were to default on the lease.
I have read the information on bankruptcy and proposals, but it is unclear that a business proposal would be to my advantage since the business is not incorporated.
Could you please advise as to what would be a viable option for this case?
Additional info that may be useful is I am a single (divorced) 49 year old female (grown sons), earn a very good salary with benefits and have an excellent credit rating. The landlord has two months rent as a deposit and I am not in arrears on any bills associated with the laundromat (or personal bills).
Currently the landlord does not have a home address or work place for me. I did not sign any personal guarantee or security pledge. I know that the landlord can seize the assets of the laundromat if rent is in arrears and this would be ok with me as well.
Thank you in advance for your attention to this email. I look forward to your advice at your earliest convenience.
