business closing & commercial lease

[nediaaa]

hi all,
I have a showroom in a leased building and and thinking of closing. I have 1.5 years left of my lease. i have traded for 3.5 years having opened up in the recession without making or losing money but fear i will start losing money shortly. It seems to be getting quieter and quieter. I have cut all my costs to the bone and asked my landlord for a 50% reduction but to no avail. i am behind with rates and currently with no insurance.

1. If i close will the landlord likely follow me for the rent
2. Should i stick it out and hope for improvement

any advice greatly appreciated
ps. i am a sole trader

 

[viztopia]

as you are a sole trader then unfortunatley then the land lord has the option of following you. At the same time they will have to look at the practicality of doing this i.e. if you are shutting the shop because you have no money then whats the chance of them going legal on you and actually getting something? is there no break clause in your lease? Also can I ask what kind of money we are talking here in terms of annual rent?

 

[mcaul]

Market is starting to improve - area to avoid is anything to do with males 18 - 25 (highest unemployment rate) or people age 28-35 as this is the age group most affected by high house prices in the boom.

35 - 45 may be affected a little less by house prices, but many will have the expense of children.

Over 45 age group are the group with money and once confidence returns, they will be first group to spend.

So, if your target market is age 45+, stick with it and the market should come back. If you are targeting other groups, it may be too long before they start spending for your to make it worth your while.

Talk to the landlord - show the figures you have an dtry at least to get 20-25% off rent (50% is asking too much). Also start a payment plan on rates - they will go after you personally and are your responsibility.