Mods: apologies if this is in the wrong forum
My parents (who are in their early 60’s) are the only directors of a ltd company. It trades as a millinery business(hat making) & they’ve rented the same small shop in a local town for the last 10 years, employing a woman part-time. The land-lord is looking to them to sign a 4yr lease but they’re holding off... now I know why....
I knew it wasn’t going well over the last few years but finally my parents opened up over the weekend & admitted that that the company hasn’t been making a profit for the last few years & because of the losses each month it’s not got a lot of money left in the bank – approx. €5,500 – they’re looking for me to say what I think is the best thing to do.... & I haven’t a clue!
The bills are mostly up-2-date (rent; electric; rates & wages are paid but other bills are about a month behind), they’re registered for VAT & that’s just about paid. The accounts are all up-2-date & they’re arranging a meeting with the accountant to get her opinion next wk. There are no business loans outstanding & if they closed down they think they’d have enough to pay everything off, but I’m not too sure about that...
The company doesn’t own anything save equipment used in the day-2-day running of the business (nothing big that would be worth money!).
They’ve been living off a pension that me da gets from his old employer (approx. €800 per month), they haven’t been taking a wage out of the company for years & only have €2,300 in savings in the CU.
I think their best bet would be to close down & try to sell anything they can to make as much money to pay off anything that is due & dissolve the ltd company status. But what happens to them then? Would they be eligible for Social Welfare? Where do they go to ask? Or is there a phone no. they can ring for advice?
Thanks for any help or advice you guys can give & thanks for reading
Jtk
My parents (who are in their early 60’s) are the only directors of a ltd company. It trades as a millinery business(hat making) & they’ve rented the same small shop in a local town for the last 10 years, employing a woman part-time. The land-lord is looking to them to sign a 4yr lease but they’re holding off... now I know why....
I knew it wasn’t going well over the last few years but finally my parents opened up over the weekend & admitted that that the company hasn’t been making a profit for the last few years & because of the losses each month it’s not got a lot of money left in the bank – approx. €5,500 – they’re looking for me to say what I think is the best thing to do.... & I haven’t a clue!
The bills are mostly up-2-date (rent; electric; rates & wages are paid but other bills are about a month behind), they’re registered for VAT & that’s just about paid. The accounts are all up-2-date & they’re arranging a meeting with the accountant to get her opinion next wk. There are no business loans outstanding & if they closed down they think they’d have enough to pay everything off, but I’m not too sure about that...
The company doesn’t own anything save equipment used in the day-2-day running of the business (nothing big that would be worth money!).
They’ve been living off a pension that me da gets from his old employer (approx. €800 per month), they haven’t been taking a wage out of the company for years & only have €2,300 in savings in the CU.
I think their best bet would be to close down & try to sell anything they can to make as much money to pay off anything that is due & dissolve the ltd company status. But what happens to them then? Would they be eligible for Social Welfare? Where do they go to ask? Or is there a phone no. they can ring for advice?
Thanks for any help or advice you guys can give & thanks for reading
Jtk