Legal Question in Landlord & Tenant Law in California

Your biggest problem is that you are still on the hook for rent for the duration of the lease unless the landlord can re-rent the premises (which the landlord is required to make reasonably dillegent efforts to do). Far and away your best option is to negotiate a lease termination agreement. If you can't do that, either for financial reasons or a recalcitrant landlord, the only way you can get out of being liable for the rent until a new tenant moves in would be to file bankruptcy. The only reason to respond to the UD action (which is a good reason) is to buy time to try for a negotiated termination or to get a BK on file.

I assume you mean you received a summons and complaint for unlawful detainer of the property and seeking your eviction. Since a default judgment against you may effect your credit ratings you do not want to just let it go. Filing a general denial is done all the time by people who are liable, just as many criminals plead not guilty even though their is a solid case against them.

Contact your landlord and see if you can work out some type of deal with him. Often in return for a date certain when you will be fully moved out an owner will agree to hold off on legal action until then [or will ask that you agree to a stipulated judgment if you are not out by that day]. Do not be so honest to destroy your own situation; most businesses do not sell the overall best product, and often no one knows which manufacturer has the "best" product. Owning a property and renting it are businesses and no one is totally honest and revealing of negatives. Why file for bankruptcy; you seem to say that you have the assets to continue the business, just in a different location.