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I know this isnt the place to ask...but im in a bind and need advice
 

I recently signed a 6months mall kiosk contract to try and get rid of all my crap I couldn't on ebay...well 1 month in I didn't even profit $500.

My rent is $1500 a month
then in Nov its $2000 and December its $4000

There is no way in hell I can afford this.
the contract is in my corporations name. Signed by me like this (name - ceo)

But the mall at the beginning needed my SSN to do a background check. Now I am paranoid that if I just disappear my credit score of 810 will be screwed even tho I signed in the corps name. Idk guys please help me. I can upload a pic of the contract if needed. Thanks in advance.

Re: I know this isnt the place to ask...but im in a bind and need advice
 

How could you sign a contract unsure of your current financial state? Bad decision...
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Re: I know this isnt the place to ask...but im in a bind and need advice
 

That could be a difficult one, you can see if you can buy your way out of the contract

Re: I know this isnt the place to ask...but im in a bind and need advice
 

1. What are the items? I am familiar with Kiosks in malls. Maybe I can give you some insights.

2. Talk with the person you signed the contract with you and explain the situation and see if there's a penalty that you can get out of that makes sense.

Re: I know this isnt the place to ask...but im in a bind and need advice
 

Saijin makes a good point about 2. - deal with the penalty to cancel and move on

Re: I know this isnt the place to ask...but im in a bind and need advice
 

Womens handbags. Non brand. They dont sell....worst idea on my part oh well.

Re: I know this isnt the place to ask...but im in a bind and need advice
 

This applies to US....

I have had mall stores in the past, and in my experience, the mall landlords are the most ruthless of them all. The best way to deal with them is to play poker with them...as in they know exactly what your sales are, and chances are that if you are judgment proof they will not do anything if it's obvious to them that your sales no way justify the rent. Remember, they can't just close you down; you can stay open until they formally evict you. Many people who declare bankruptcy often does this to squeeze every single last dollar out of a store.

It costs money to sue for possession if you don't pay rent, and if the space is not that hard to rent out, a lot of times they will just let you out in exchange for not getting a lawyer and delaying the eviction process for six months. Remember, it's not personal to them. They will not put an eviction on your record just because they're pissed at you for not paying rent. They will always do what makes them more money.

Re: I know this isnt the place to ask...but im in a bind and need advice
 

It is very simple: Under the terms of the contract are you personally joint and severally liable for the rent or does the liability strictly fall under the responsibility of the corporation. If it is the latter, then simply walk away. They can sue your corporation for between 90 days and all the way up to the remainder of the contract depending on the laws in your jurisdiction.

Since I am assuming this is a shell corporation that you do not care about and it has little to no assets then there is nothing to worry about.

Disclaimer: This is not legal advice, just knowledge from my vast experience as a retail tenant. The decision and the consequences will ultimately be your responsibility.

Re: I know this isnt the place to ask...but im in a bind and need advice
 

Have you tried sourcing more new product that the clientele may be interested in like electronics?? I don't know if I would give up so fast after only trying to sell bags.


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Re: I know this isnt the place to ask...but im in a bind and need advice
 

Brick and mortar sales of electronics are fading quickly...

Re: I know this isnt the place to ask...but im in a bind and need advice
 

i know many cell phone store owners who would beg to differ...:rolleyes:

Re: I know this isnt the place to ask...but im in a bind and need advice
 

Its a corporation only. This corp has $600 gross sales. THATS IT haha oh and a $15000 dollar credit card...

Re: I know this isnt the place to ask...but im in a bind and need advice
 

Seriously... did you really expect to sell enough non-name brand handbags in December to pay a 4K rent?

If you're the only real corporate board member they're going to try to 'pierce the corporate veil', I've done it myself, it isn't very hard if you get a sympathetic judge.

That will make you personally liable. That's possible so people don't just hide behind the corporation and run up huge debts and run away.

I think Saijin and the others make sense. Short and practical answer, try to buy your way out.

Be assured, they can trash you easily if they want to put the time and energy into it.

I've done it to people who stiffed me and I'm not even an attorney.

Re: I know this isnt the place to ask...but im in a bind and need advice
 

Have you talked to the landlord yet? I really think you should find out about it.

Holidays is coming and if you want to keep the kiosk, I hope you have a good plan on how to turn things around.

Re: I know this isnt the place to ask...but im in a bind and need advice
 

Nope, but I have talked to a couple lawyers...and they said the way the contract is written they expect people to just leave. Hense why there is a $1200 security deposit they will be keeping.

honestly i dont care come after me. im broke lol

Re: I know this isnt the place to ask...but im in a bind and need advice
 

Liens can last 7 years most places, more if you renew them.

If you plan to have money in the next 7 years, you're still going to be at risk if they take you to court and win.

Once they have a judgment, they can clean out a person's bank account any time there's a positive balance, seize cash directly from the till of a physical business location, place a lien on real estate that makes it impossible to sell... the options for collections are virtually endless.

Still, you paid for an expert, and I suppose it's not enough money to pursue very diligently for a big corporation like a mall, but trust me, I've done all of the above.

I had one lien against real property come back 15 years later when they went to sell the house and I got my money then.

Re: I know this isnt the place to ask...but im in a bind and need advice
 

I suggest you talk to them at a personal level and just see what they are willing to do.

I always feel that the right people will always work things out if you are sincere with them.

Re: I know this isnt the place to ask...but im in a bind and need advice
 

The only thing I have stiffed them is leaving before the contract is up 5 months left. They can easily replace me for the holidays. Not only that....why is there a security deposit if they will just come after you anyways? They have a $1200 security deposit. I have never not paid rent while I have been here.....They wont pursue 10k....and to be honest....I simply cant afford to stay or buy my way out....so honestly who cares. im screwed either way...but to disappear maybe they think i died.

Re: I know this isnt the place to ask...but im in a bind and need advice
 

They may have a duty to 'mitigate their losses' and if they get another tenant the total debt may be less.

The $1200 may also mitigate the 10K exposure... I think you should try Saijin's advice and go in and talk to them face to face.

They've seen this movie a thousand times, trust me. They may even let you go so they can get a successful vendor in there before the holidays. The worst they can say is no, true?

Re: I know this isnt the place to ask...but im in a bind and need advice
 

Yes, but they can also threaten me. Why have to hear bull crap? When I am leaving anyways?

Re: I know this isnt the place to ask...but im in a bind and need advice
 

The problem with this idea is that in any mall worth being in, your lease with specify what you can carry so you don't steal business from another tenant. Once I had an indian guy who opened a beauty supply place next to me and once he saw how well my store was doing, he tried to completely change his business to compete against me. I had the landlord stop this foolishness because my lease stated that I would be the only store in that section of the mall selling similar items.

Re: I know this isnt the place to ask...but im in a bind and need advice
 

Just leave and have them keep your deposit then. Case closed.

Here is the #1 mistake you made however- You tried to sell unbranded handbags on one of the largest international marketplaces and they didn't sell.

You then went and made your available audience much, much smaller by going to a local mall (do people even go to malls anymore?) to sell the same stuff.

Ideally you would want to have had wild success online before moving to brick and mortar (limiting your buying audience.)

Good luck in your future endeavors.