Restaurant sale — a way out?
I have a struggling restaurant that I’m selling and the sale price will cover all my restaurant debt. Would this be a good move for me to walk away with no money from the sale. Thanks
Terry Says
Oh, that’s such a tough and sad decision you are forced to make. And only you know what you will do next if you walk away debt-free. That’s a decision on which I can’t opine. BUT, I would encourage you to make sure that you have a good attorney representing you to make sure that the purchaser assumes ALL liabilities, including back taxes and any penalties on the loans. And the lender should have a written participation in the deal, releasing you from the liability. If the purchaser is paying off the loan, don’t take his word for it. Hold the deal in escrow until the loans are repaid in full, including back interest and penalties. In other words, if you’re walking away, make sure you are legally walking away from everything including future legal claims, employee taxes, back property taxes, etc.!! It needs an airtight contract for sale.
