Bought a UK business, Now I've been back Stabbed.

Masterkey01

Hi all.
Small issue and i don't think theres any easy way to handle this would like your help please.

April 2019 i bought a Uk Business from a Husband and Wife Team that had a few different business all around the same trade and were selling off one side of it.
It was basically manufacture of a product and the Business sale was purely Intellectual property and training on how the product is made as well as there social media profiles and a lifetime support etc, No actual Items.
I bought it as a hobby business something that i could do on the evenings weekends etc, and it cost me £3000.00.
So upon purchase i asked numerous questions and part of the deal was that to buy it was that they guaranteed to not manufacture the item ever again and whatever enquires they got would be passed onto me.
So i bought it, Paid em, Went over for a few days learned how to make the products. It took me a couple of months to get the thing organised and up a running and was June before i began taking orders. In September i went over things and the hassle and numbers didn't make it feasible, The products are extremely large, The core building materials came from the uk and all the sales were Uk, So i was just bringing stuff in and sending it back out.(I knew this before buying the business but i was just to eager).

Anyway I contact him in September and told him my issue that i was going to sell it if he knew anyone would be great. He was absolutely no help and completely started to bash me. Fast forward on to Yesterday and pops up on my facebook feed is a Person stating that he is after taking over the business i originally purchased and taking orders.
I immediately contacted the Gentleman i bought the business off we sent numerous messages to each other yesterday and there is absolutely no talking to him what so ever, Unfortunately he's extremely arrogant and thinks I'm the unreasonable one.
He seems to think because i wasn't taking orders that he could go away and sell it all over again and Show somebody else how the products are made, I explained to him that this completely compromises my purchase off him and it was no longer his to sell.

I know my options here are limited.
- I could contact my solicitor but i see that going nowhere given the boarder issues.
- I could look into Uk Trading standards and consumer rights etc but because i didn't buy a product i don't think they'll do anything.
- Im going to contact the other guy who claims to have bought the business, Although i know its not completely his doing. Im hoping it'll put pressure on the pair of them.
-The Gentleman i was dealing with is very prominent on Social media and there other business they have is active i know they are well liked, I could go away and bad month and bash them etc.(Thats not really what I'm about though)
- Lastly as my final hurrah, I could publish info and instructions on how the product is made, completely ruining the whole thing for everyone.

Big Spiel with a lots of blabber, But Thanks for your Help.

nuac

Mod
You should consult your solicitor.
Leaving open for general discussion subject to forum rules

the “new” person may well be a friend of the guy who sold you this, so do be careful there as to what you do or say to them - also, were geographic terms agreed I.e. you have worldwide rights to sell or just rights to sell to uki etc?

Telling someone “we promise never to make it again” doesn’t sound like you have total ownership of it- why would they need to say that to you if you now have full ownership- which begs the question, what exactly did you buy for £3000 ? You might need a solicitor to explain that to you based on the documentation you provide them from the sale. Is it patented or patent pending? £3000 seems cheap to own outright, for something that might have had a lot of R&D attached to it originally.

It sounds like a very closed market whatever it is in that all sales are uk based- why’s that?

PS- he promised never to make it again- he’s not making it-someone else is-did he promise never to sell the process to anyone else again? That’s different.

Losty Dublin

Forgive my input here but this sounds more like that you bought a franchise from the original people than an actual business. Unless you have lots of documents and contracts with clauses and terms and conditions that define exactly what you were supposed to have bought and what you actually got then you may well be wasting your time here. Best ask your solicitor and see if it's worth your while to chase up.

Masterkey01

nuac wrote: »

Mod
You should consult your solicitor.
Leaving open for general discussion subject to forum rules

Ok Thank you, I will.

Masterkey01

[Deleted User] wrote: »

the “new” person may well be a friend of the guy who sold you this, so do be careful there as to what you do or say to them - also, were geographic terms agreed I.e. you have worldwide rights to sell or just rights to sell to uki etc?

Telling someone “we promise never to make it again” doesn’t sound like you have total ownership of it- why would they need to say that to you if you now have full ownership- which begs the question, what exactly did you buy for £3000 ? You might need a solicitor to explain that to you based on the documentation you provide them from the sale. Is it patented or patent pending? £3000 seems cheap to own outright, for something that might have had a lot of R&D attached to it originally.

It sounds like a very closed market whatever it is in that all sales are uk based- why’s that?

PS- he promised never to make it again- he’s not making it-someone else is-did he promise never to sell the process to anyone else again? That’s different.

Yes more than likely i expect the this new person to have some relationship built up with him and my guess would be that he'd immediately go to him and ask what was it all about, Geographically yes i had worldwide coverage, Basically the agreement was that if purchasing the business it would all get handed over and they would never have anything to do with it again.

I was told that in response to one of the many questions i asked before i purchased, What i bought was to be thought how to manufacture the product really and the customer base, Contacts, Social media profiles. No its not patented, and yes the £3000 was relatively cheap but this reflected in the nature of the business really.
No sales could be worldwide really and i have gotten enquires for the product form multiple countries, But its the size and weight of the item they would have to be sent on pallets and this would outweigh the item cost.

What it is you ask, There essentially housing systems for exotic animals, All the products and materials used to make them are uk based and readily available but it will only function properly in assembled a certain way.

Masterkey01

Losty Dublin wrote: »

Forgive my input here but this sounds more like that you bought a franchise from the original people than an actual business. Unless you have lots of documents and contracts with clauses and terms and conditions that define exactly what you were supposed to have bought and what you actually got then you may well be wasting your time here. Best ask your solicitor and see if it's worth your while to chase up.

No not a franchise, I was to get the complete handover of there existing business and for them to never deal with it again. Unfortunately i don't have any contracts etc, Purely just emails and messages stating what i was receiving and a receipt for the purchase.

Masterkey01

Losty Dublin wrote: »

Forgive my input here but this sounds more like that you bought a franchise from the original people than an actual business. Unless you have lots of documents and contracts with clauses and terms and conditions that define exactly what you were supposed to have bought and what you actually got then you may well be wasting your time here. Best ask your solicitor and see if it's worth your while to chase up.

No not a franchise, I was to get the complete handover of there existing business and for them to never deal with it again. Unfortunately i don't have any contracts etc, Purely just emails and messages stating what i was receiving and a receipt for the purchase.

Ladyinthedark

Too many loop holes in the purchase I would hire a solicitor in Britain and use the one you have in Ireland .then I would ring the new owner tell him what is happening and let him know he could be liable also then I would get Irish solicitor to contact him after you talked to him (new owner ). So because he signed a contract and has other businesses I would contact uk tax office as well while before doing all this I would email him letting him know your available to talk lol