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Closing down a company after being in business only for 2 months

appleapple Settling In NicelyRegistered Posts: 39
one of my company has just started to trade a couple of months ago. The director bought a bakery franchise, paid the franchise fee, signed the franchise agreement and opened a bakery on high street.
it seems that the business is not going well at all, they hardly make any income. the owner who is the director too is planing to close down the business. The business signed up for 3 years to rent the shop where the bakery is, this is the biggest amount they should pay, plus they have to pay business rate to the council.

the company will make loss but wont be many creditors to pay (except the landlord and , council, card reader company).
the director is afraid of going to insolvency. He thinks if he would like to take on a personal loan or mortgage for himself there will be some record at the bank that he used to be a director and the company became insolvent.

what would be the legal way to cease trading?
thanks

Comments

  • T.C.T.C. Experienced Mentor Registered, Tutor Posts: 1,448
    I think that these details would come up on a credit check.
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