owed 6000 from shop

Hi Folks

Recieved letter from solictor acting for shop who we supply, stating shop closing. We sold shop 12,000 euros , they paid 6000,00 so owe 6000.

The letter states as we hold title to goods we should come and collect stock.

The customer has had stock for over 6 months, they are sole trader.

what is best course of action, to get paid for stock.

Stock has devalued considerably over the six months and is hard to resell.

Any ideas?

dingdong said:

Stock has devalued considerably over the six months and is hard to resell.

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How hard?

Even if you heavily discount it, getting a few quid for it is better than nothing - which is probably what you'll get otherwise.

I'd take it back.

Get the stock before before they go bankrupt and you are left with nothing.

dingdong said:

Recieved letter from solictor acting for shop who we supply, stating shop closing.

Click to expand...

Can you clarify a couple of things:
- It's surprising the letter has come from a solicitor. I would have thought it should come from a receiver (i.e. an accountant). Do you know the actual status of the store: is it in receivership yet? Have you spoken to your usual contact in the store to verify the situation?
- Also, had you a specific 'retention of title' clause in your agreed terms for supplying the goods? If so, was this at your sole discretion - or the buyer's? (The latter would be extremely unusual)

If it's a sole trader then they will probably continue to be liable for the debt owed after the shop has closed. It sounds like this could be a tactic by the solicitor to avoid that debt.

If I were you, I'd get legal advice on this, as you could be short 6k you are owed by another indvidual (not a company). IMO you are better chasing the debt owed rather than incur the costs and risk of reselling the stock.

Thanks Bob - sounds like good advice

This is our conditions of sale footnote
CONDITIONS OF SALE
Invoices not paid within 30 days, will be chargable at 2% interest per month.
Returns will not be accepted unless prior arrangement with Head office, within 14 days of delivery date. Title to these Goods will not pass to the Purchaser until payment has been made in full.

If you sold for 12000 and got 6000 you have probably covered your costs.
Anything you get for the recovered stock will help offset any other losses.

Take it back sell for 20% cost and count yourself lucky you were not caught for the full 12000.

The crucial thing re your decision is whether your creditor is a ltd. co. or sole trader/partnership.

If a ltd. co. take back the stock;
if sole trader then you have other options but your stock would want to have devalued a hell of a lot for you to leave it there.

If you got a solrs. letter it is probably a sole trader who owes you;you can pursue them personally.

If it was a ltd co then the letter would probably come from a receiver or liquidator.

You also need to consider the practicality of collecting the outstanding money, you might be better just collecting you stock and selling it on at half price, leaving you with a loss of €3,000 only. Fees from a debt collector, solicitor etc might eat in to the difference, the time and effort on your own behalf too.

Only a thought!