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Thread: steps to closing a micro cc business

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    steps to closing a micro cc business

    Morning Forum

    We are starting to do research to close down our business and retire. [Its time]. As we are not selling it as a going concern and we will be giving our workers retrenchment packages we will need to sell equipment and customer database. We now have people who want to buy the equipment and customer database.

    The questions are:-

    1. How soon after closing or before closing must retrenchment packages be paid out.

    2. From our workers side - what documentation do I need from them to cover myself legally so there are no come-backs after payment and closing business [Told them every year for last two years - we close in 2016].

    3. From my side - what documentation must I give my workers and how soon?

    4. How do we work out the value of the equipment - most of it has totally depreciated except for the full colour printer which may have - its 5 years old?

    5. Are there any legal issues when it comes to selling a customer database and what steps should we follow e.g. must we get the customers permission [We are a micro-cc but have a few very big customers]?

    6. How do we work out the value of the database?

    7. Besides covering the UIF forms and making sure VAT and Tax is paid up - sale of equipment will help to cover this [I presume we can sell everything to cover costs like retrenchments and tax] - is there anything else I should do or know about at this stage with 8 months to go.

    Blessings
    Denyse

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    Why not sell the business as a going concern,then you don't have to retrench the staff?

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    Workers

    Quote Originally Posted by roryf View Post
    Why not sell the business as a going concern,then you don't have to retrench the staff?
    Our workers most have been with us for 19 years - are tired and getting old. They battle with rigging, and bending', some of the work quality is dropping. I do not want to send the business to a new person with these people. You know the law - we remain responsible for them for I think 3 months. I want to avoid CCMA - went once and won the case but do not want to go again.

    D

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    Quote Originally Posted by Denyse View Post
    Our workers most have been with us for 19 years - are tired and getting old. They battle with rigging, and bending', some of the work quality is dropping. I do not want to send the business to a new person with these people. You know the law - we remain responsible for them for I think 3 months. I want to avoid CCMA - went once and won the case but do not want to go again.

    D

    Not sure if I agree with you but anyway. As much as you do have a responsibility to your staff - you are quite entitled to sell the business and are more than likely to get more for a going concern. The new owner might want the old staff for the experience etc, he might have new ideas with them. But you seem set in disposing of the business, perhaps for other reasons. I personally would get hold of a labour specialist etc and close down properly.
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