I bought this business with no idea about how the former owner ruined its reputation with vendors. It is a fashion retail business and it seems like she owed every one of them money with her corporation. I really want to carry this one line but they will not deal with me because she owes them money. The business name is the same (DBA) but the corporations are not the same.I am thinking of just changing the name of the store so that the slate can be wiped clean.Also, if I do that, will that mean that the other business "went out of business" and that I wouldnt be liable for any debt associated with it?
      Answer1:First of all, you bought the business so it was your responsibility to research the financial state of the business before you agreed to buy it. The money owed by the business is now owed by you. If you can prove that the previous owner lied to you or intentionally presented false information or intentionally omitted information, then you can sue the previous owner. But, the bottom line is that the Corporation (which you now own) owes another company money.As far as changing the name. You would have to have the Corporation file bankruptcy. In order to do that, all the businesss assets would have to be sold and all the debts paid as much as possible. You cant just change the sign on the building and start over. I suggest you negotiate with the companies that your corporation owes money to. Tell the companies about the change in ownership and ask to set up a payment plan for the debt but also ask that they allow you to carry their products while the debt is in repayment. I think if you are making payments on the old debt and you pay up-front for any new inventory they will work with you.
      Answer2:I think the guy before me - SmartA has a real good answer. I would just add a note. You really should sue that person, most of us ( me included) dont like conflict and dont want headaches, but you already have both thanks for that persons lies. You are very likely to succeed in the law suit and wither get compensated or get out of the ownership. Who knows what else she did, you may have the government come to you in two years for thousands of dollars in back taxes. Find a lawyer that will work based on the case results. Good luckToronto and Canada custom printing, embroidery, promotional items. “Toronto band T-shirts”, “Toronto business cards”, “Toronto magnets”"Artik Toronto Review" see our site http://www.artik.com/