D
daibhnaid
Guest
Hi,
I am a sole trader in a rural town - retail business (fashion and footwear) and have spent this weekend making what for the past year has been an inevitable decision to close. I opened my business early 2008 and trade was booming until September 2009 when things changed and have gotten progressively worse since then. At first I thought I would be able to trade through it but I feel now I would be better closing before I get into a worse position. We are closing purely because of poor sales. The customers that we do have are very happy with the product we sell and selection that we provide but, and this is the crux of the problem, people just don't have the money to spend anymore, therefore we don't have the money to buy new stock or to pay suppliers. We have tried various promotions and different things to try and generate better sales but at the minute nothing is working.
Our weekly takings are just about paying for rent, rates, wages for 1 pt employee etc but there is nothing extra to pay for stock. I myself haven't taken a wage since October 2009. I have managed to pay for all stock ongoing up until this winter. In other years our summer season would yield enough income to cover all new winter stock but not this year, so I have been struggling to pay suppliers and its just so hard. I find myself avoiding calls for suppliers as I know they are looking for money that I just dont have.
On paper it looks as if the stock we are carrying would cover all loans and monies owed (stock value 65k cost. loans and monies owed 60k) but my fear is that even by having a closing down sale we would have to let some stock go at way less than cost just to get rid of it and therefore be left with a shortfall which personally we couldn't absorb as my husband wages are already covering all household bills etc at present.
I know as a sole trader I am liable for all business debt but I was just wondering if there is anyone out there in the same position or has come through the same problem? Any advice would be appreciated as I am at a loss as to how to solve this problem. I have spent the last few days in tears at the thought of having to close my business but I can't see anyway out of it.
BTW so sorry for the long post.
I am a sole trader in a rural town - retail business (fashion and footwear) and have spent this weekend making what for the past year has been an inevitable decision to close. I opened my business early 2008 and trade was booming until September 2009 when things changed and have gotten progressively worse since then. At first I thought I would be able to trade through it but I feel now I would be better closing before I get into a worse position. We are closing purely because of poor sales. The customers that we do have are very happy with the product we sell and selection that we provide but, and this is the crux of the problem, people just don't have the money to spend anymore, therefore we don't have the money to buy new stock or to pay suppliers. We have tried various promotions and different things to try and generate better sales but at the minute nothing is working.
Our weekly takings are just about paying for rent, rates, wages for 1 pt employee etc but there is nothing extra to pay for stock. I myself haven't taken a wage since October 2009. I have managed to pay for all stock ongoing up until this winter. In other years our summer season would yield enough income to cover all new winter stock but not this year, so I have been struggling to pay suppliers and its just so hard. I find myself avoiding calls for suppliers as I know they are looking for money that I just dont have.
On paper it looks as if the stock we are carrying would cover all loans and monies owed (stock value 65k cost. loans and monies owed 60k) but my fear is that even by having a closing down sale we would have to let some stock go at way less than cost just to get rid of it and therefore be left with a shortfall which personally we couldn't absorb as my husband wages are already covering all household bills etc at present.
I know as a sole trader I am liable for all business debt but I was just wondering if there is anyone out there in the same position or has come through the same problem? Any advice would be appreciated as I am at a loss as to how to solve this problem. I have spent the last few days in tears at the thought of having to close my business but I can't see anyway out of it.
BTW so sorry for the long post.