What happens to the gear when a shop closes

[aclearspot]

Like title says what happens ? It had Canton, B&w ,Kef , Mc and clearAudio. The demo pieces do they belong to the manufacturer ? What about the inventory, does it get returned ?

[PHC1]

Typically inventory is auctioned off to liquidate assets and pay the creditors (usually pennies on the dollar) when a bankruptcy is declared. Unfortunately there will be much of that going on this year. How it works now under quarantine conditions, I have no idea.

[Antonmb]

Do you mean closed as in Chapter 7 bankruptcy? I think everything belongs to the creditors unless a supplier can show that their product was there on consignment and legally owned by them and not the shop. A court is typically involved in determining what creditors have priority, the goods are liquidated and the debtors paid off in order of priority.

[metaphacts]

Originally Posted by aclearspot

Like title says what happens ? It had Canton, B&w ,Kef , Mc and clearAudio. The demo pieces do they belong to the manufacturer ? What about the inventory, does it get returned ?

Depends. If the gear is on loan or purchased through a leasing program, there is typically documentation that shows that ownership belongs to the manufacturer.

That said, possession is 9/10's of the law. It's not easy to get your gear back from the bank even with all the proper paperwork.

[PHC1]

More than 200,000 small businesses vanished between early 2008 and 2010. This time around? It's anyone's guess..

[PHC1]

TheStreet had this to say.

"The Small Business Administration lists approximately 30 million small businesses spread across the United States. Collectively they employ almost 59 million people. By the end of June, up to half of them might be gone."

Let's hope that is way off the mark.

[aclearspot]

the dealer had a tt Ive been eyeballing and was waiting for quarantine to be over. Was going to be over 04/07 ,but now 05/01. I just checked his face book page and he decided to hang it up. Its quite shocking really, every time I was there they were busy. I ought my first Mc from them .

[Antonmb]

Ah, I think we were assuming (at least I was) you meant bankrupt. If the dealer just decided on his own to close up, then who knows - if he owns the equipment, he may be making deals to return stuff, or selling it to another shop or a liquidator, or putting it in his garage. You might just try to track the owner down on the phone and ask him.

[Poppyhome]

Spotlight: The Impact of the Coronavirus on Small Business
40% of Small Businesses Not Already Shut Predict Closure in Two Weeks

https://www.uschamber.com/report/spe...small-business

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[aclearspot]

The principal was pretty old, Pretty sure he just decided to close. His Mc product because of the clandestine methods used to discount was probably owned by Mcintosh , right ? Im kind of an impulse buyer.I do my research, think about it for a couple of weeks or more. Then at some point in time it hits me. I was in his shop right before the three week quarantine, 2 weeks later he hangs it up