Legal Question in Business Law in California

Debating Shutting Down the Bussiness
I own a dollar store in CA. I am not making money, actually lossing money. My landlord reduced the rent to 7,000 a month, but I still cant keep up. I am asking him to give me half the store and he tells me no,,,I have over $600 worth of NSF checks for this month only! I work 7 days a week and dont get paid.What should I do? My landlord told me he will release me of my lease just give him the keys back, but what about the inventory. I want to stay, I think, I just cant afford the rent. He said if I dont pay him his rent that he will serve me the next day,,what are my options and what do i need to do with the state and govt if I close the business?

Asked on 3/30/09, 12:15 am

2 Answers from Attorneys

Terry A. Nelson Nelson & Lawless

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Re: Debating Shutting Down the Bussiness

Obviously, you should try to sell the store and/or inventory if you can, quickly. If not, then your landlord's offer to let you 'walk away' from the lease obligation is a generous one. You owe the rent for the remainder of the lease term, and he could sue to evict you and for all that remainder rent. Factor that into your decisions. Consult with a local attorney if you need help with the written agreement you should have with the landlord to protect yourself.

Answered on 3/30/09, 2:23 pm

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