www.iva.co.uk

Hey all,

I'm really struggling with money (well lack of money actually) and I don't see it getting any better until the restaurant is sold and I can do the IVA. I'm thinking of selling my car on ebay so that I can use the proceeds to live on. My Dad has put me and hubby on his insurance so that we can use his car. Will this be allowed do you think? Or will I have to keep that money seperately to put into the IVA "pot" at the end? We are selling small stuff on ebay to keep us afloat but this will probably be a couple of grand if we're lucky.

At the moment the only income we have is working tax credit of £79 per week and we can't look for jobs yet as we both have to work in the restaurant to keep it open so it sells, plus we don't even know when it will sell.

I've received all stuff from Melanie's office so just getting that all together, that makes me feel a little better as I can see things are moving along but I just don't know how long it will take for restaurant to sell so am really worried.

My Dad is doing all he can to help but he has other commitments, my grandma in Greece is 94 next week and my Dad helps out financially with her and my Auntie who looks after her.

I just feel like I am in such a mess and to top it all, I've never seen the restaurant so quiet. I'm so worried, I hardly sleep and don't know whether I should just give up, close the restaurant and hope for the best.

Sorry, I sound really whiney but I'm close to breaking point now, I'm glad I've got this forum.

Any advice would be appreciated. Viki X

Poor you.. I can't answer your questions about car, but wish you the best..

Vicky

There is no problem in selling your car to fund your ongoing living costs, but clearly your agent needs to get the business sold as quickly as possible.

If trade is dropping off, this will ultimately affect the price a purchaser is going to be prepared to offer, as they will want to see the recent trading results.

Viki you should have got gordon ramsay in.. he works miracles!!

Thanks Melanie, The agents have asked for only last years trading accounts so I have supplied them. This company insist that the sale price has been set using weekly takings and the potential for a new owner to increase trading hours, not anything to do with the loss I made which is shown on the accounts. I hope they are right. I can only wait I suppose. I'll sell the car though as this will tide us over. Thanks for the reply. Viki X

Funny you should say that Ang because we were approached by channel 4 regarding going on Gordon Ramsey but we thought it would be the kiss of death as they did one in Liverpool and they ended up going bust..... of course here I am now in that situation so I should have grabbed the chance. Gordon is our chef's idol but they would have ended up killing each other. It's true....all chefs have a temper! X

Gordo is a bit scary though Ang.......lol.

Viki, sorry your feeling so bad at the moment. I hope things start to get better for you xx

If a new owner can increase trading hours, why haven't you? That is a rhetorical question, by the way - but is likely to be a key concern of your purchaser who will be motivated by trying to get the best deal possible. As soon as there is a sniff of financial difficulty, the offer sum is bound to reduce. Your agents need to understand the urgency of securing a sale as soon as possible.

i love Gordon he's my hero!!

Melanie, we did increase trading hours. We opened all day every day, our lunches were fab. My dad gave me nearly £4K to advertise the fact on our local radio station when we started doing it. It was a complete disaster. There wasn't any day time trade there. I even spent all night baking cakes etc to sell the next day. I just ended up eating them all because we didn't get anyone in! I spent tons on advertising and gave up after six months. That's one of the reasons I am in debt because of the costs regarding this.

Melanie, what would happen if we just gave up, closed down and tryed to get jobs? It's a big IF but I'm so fed up at the moment I'm thinking of all options. Viki X

Hi Ang would he not scare you?

Exactly my point Viki - what can new owners do that you have not?

If you close the restaurant you obviously have some fixtures and fittings which could be sold at auction, but very little tangible assets other than this.

If you were to get jobs, depending upon the amount you would earn this may result in some disposable income becoming available to make an offer of settlement to creditors, or alternatively bankrutpcy proceedings may well be another option to consider.

Give me a ring in the office on Friday if you want to discuss options.

Thanks Melanie, I will call you on Friday. Sorry if I sound like I'm changing my mind about everything but as you say I really don't know whether the restaurant will sell for this amount. What does worry me is that if we close and get jobs that obviously I won't be able to pay my Dad's mortgage (the money that he lent me) each month because I will have to pay creditors for five years. I know it is all my fault being in the situation and putting my dad in this situation, I just want to do the right thing. If someone comes along tomorrow and offers asking price then a full and final IVa would be perfect....I can only hope. Viki X

I can't think of anyone else I'd rather be scared by!!! [:I]

Please don't apologise Viki - you are the guys who are going through this every day - and each day you have to open up must get worse when you know you have a great place, but people do not want to come through the doors.

You are a victim of the times - this is happening in small shops, pubs, restaurants and hotels, as consumers are tightening their belts and not wanting to splash out on luxuries. When you operate in the leisure industry, you can be the first to feel the pinch.