Can anybody share the process of closing a store?

[foxylady]

I'm considering closing my meal assembly store - part of a small franchise. I've come to this decision after reading most of my issues have been covered in this forum. . .and that nobody else has been able to figure it out either.

I don't have rose-colored glasses and think I can just try to sell it as is, but I feel paralyzed on where to start on yet another long educational process. Can anyone provide a "checklist" of what all I need to think about in closing the door? Sub-leasing, outstanding debts, etc. Any guidance is appreciated!

[Kaye]

Here's a list that I put together.  I know it's no where near complete, but it has been a good starting place for me anyway.  I hope it helps.

Kaye

[allthingsculinary]

Kaye,
That is a great list and a great place to start!
K

[Cece]

I'm missing something. Where do I look to see that list you made? Is it in front of my face? Is there a link I need to click? Am I the only person who doesn't see any list?

[Cece]

Ah Ha! I wasn't logged in and it wasn't showing - I kept searching and searching - over and over.
I logged in to make the post and didn't look before I did.
I knew it had to be something simple.

[anniegal]

Here's a list that I put together.  I know it's no where near complete, but it has been a good starting place for me anyway.  I hope it helps.

Hi Kaye - thanks for posting that!  I'm curious about your GC item.  Your note says "published in paper on 2 dates; sent constant contact."  Did you specifically run an ad / send an email about outstanding GCs?  They're starting to come in here, but I'd like to feel I did my best to honor the GCs people are holding out there. 

-Ann

[Kaye]

Thanks, AnnieGal.  I just hope that list helps.  I closed on Monday and am feverishly working through the list cancelling everything.  My landlord has been incredibly gracious, so I have plenty of time to get stuff our of here.  In return, I'm doing my best to leave this place spotless.  If I find that anything needs to be updated, I'll update the list, but so far, it has served me well.

As far as my GCs, I just posted a general ad in the paper announcing that our store was closing.  If people can't figure out that means they need to come in to spend their GCs before then, well, then they have bigger issues.  I still only redeemed a handful of GCs.  The problem (as I'm sure you all have figured out) is that we don't have contact information for the recipients, so we can only do our best.  After that, my conscience is clear. 

I got a call from a GC holder from a sister store the day after they closed asking if we would honor the GC from that store, which of course I couldn't.  Plus, I also had a couple of people asking if they could cash in their GCs, and of course, I didn't.   There was still plenty of food, so I completely feel they were just looking for "free" money.  Overall, people have been extremely understanding and compassionate.  I've had a few people irritate me, but overall, it was pretty easy.  The last 2 days, I had several calls asking what kind of discounts I had on my freezer sales.  People seemed quite surprised when I told them none.  I never discounted my meals and don't regret that at all.  I sold all but 5 half pan meals.  The things that are left are things that my family likes, so at least we'll eat well  for a few days.

I'm sitting in my store right now, and am enjoying being able to not answer the phone or unlock my door.  Plus, most of the equipment is unplugged, so it's nice and quiet.

Kaye

[anniegal]

Thanks, Kaye.  I know how nice the sound of silence can be - those tables are LOUD!  Are you sad at the same time?

We've been wrestling with whether or not to place one last order.  I've been going back and forth b/t "let's make up just what we have and get out" and "everyone feels the urgency to buy now - maybe we could actually make some much-needed money this last month of sales."

So today my assistant manager basically convinced me we needed to just place the order... And 2 hours later I'm already having buyer's remorse over that decision.  Hopefully if we put an email out there with specific food we will have available, we'll continue to see the deluge of people we've seen in the past 2 days.  We've already sold as much this week as we probably had in the past 2 months! 

I don't know.  If our margins haven't allowed for a profit in the past 10 months, why would they suddenly now?  Am I wasting my time & effort?  Or is it worth it to have, for one thing, food enough to honor gift certificates that keep showing up?  And could we actually -  - make $$$, albeit just in time to close?

Would appreciate any opinions, though the deed really is already done with the order being delivered tomorrow...

-Ann

[Kaye]

Hey, Ann.  So, how did it go with your food sales?  Sorry for the delay in getting back with you, but I took a little hiatus from the forum over the holiday.  I have to say that I thoroughly enjoyed my Independence Day though!

I would love to hear how your food order is turning out though.  I struggled with the same thing though.  I bought a little more food and made up what I was pretty sure I could sell.  But, I also only made up what I liked so I could take home what didn't sell.  I only have left about 4 half pan meals (2-3 servings each).  So, I think it worked pretty well.  Now, others that have closed were having one of their best months ever.  If that's true for you, then I don't think you should doubt your decision to close for a moment.  These are only people who want what they can no longer have.  They are not people that would become great customers for you.  Instead of creating doubt, enjoy and relish every penny that you make.  If you can afford it, use it to buy yourself something you couldn't or wouldn't otherwise buy.  After all, you should get something that you want out of this endeavor, right?

Can't wait to hear back from you, Ann.

Kaye

[allthingsculinary]

Kaye, I have to say  ;)I LOVE your comment! Good for you for taking a Mental Health Weekend!
She's right Ann-go buy something nice for yourself with the cash you make, that's a great idea!

[Kaye]

I just figured out something else that I forgot to put on the list I posted -- check with your Secretary of State if you formed an LLC to get the form to dissolve the LLC. 

Kaye

[MOMX3]

Unfortunately we are in the same position as many others. We are planning to close our store in the next couple of months. How far in advance did you notify your customers? Did you allow people to assemble meals your last month or just sell out of the freezer? I would like to try to use up some inventory and don't want to order too many additional ingredients so I'm thinking freezer sales only. Not to mention that's a lot less work. Has anyone w/an SBA loan filed BK? So many things to think about. We haven't decided is August or September will be our last month but I'm definitely looking forward to not having to worry about the store any longer.

Thanks for all the advice.

[Kaye]

Hi, MOMX3.  We notified customers for about a month -- first verbally -- just telling people when they wanted to register for that next month (our last month), then we sent out weekly constant contacts about 3 weeks out and put an ad in the paper for the last 2 weeks.  Just know going in that you're not going to reach everybody.  We closed on June 30th, and I sent out no less than 4 constant contacts announcing out closing, and I'm still getting phone calls and emails wanting to know why my menu is not up. 

We officially closed on Monday, but let people make food until that Saturday before.  But, I cut off all registrations 2 weeks out.  I put that in my constant contact trying to create a sense of urgency.  We have the ability to list what's in our freezer on our website, so I would just keep that updated and people could order from that until the last day.  It was pretty easy to keep up with.  I also sent out a contact contact about every 2 days with the updated list of what was in our freezer so it would keep it in front of them.  So, with all these contact contacts going out, I just find it hilarious when people are still calling me to order food (as recently as Saturday). 

Once we decided to close, we took a pretty aggressive route with it.  We decided in late May and closed on June 30th.  We just decided that it made no sense to prolong it through the already slow summer months.  We have an SBA loan and will be filing BK, so I'll be sure to keep everyone updated if there's any interesting news to share. 

I hope this helps!  Fire away if you have any more questions . . .

Kaye

[MOMX3]

Thanks, Kaye. I did think of one additional question. How did you leave things w/your landlord? I have over 3 years left on my lease - OUCH! Do you plan to settle that as part of your BK?

[ChefGeorge]

We had an SBA loan and 3.5 years left on our lease.  Our SBA loan was secured with a 2nd mortgage on our house.  We filed bankruptcy and included the lease in the bankruptcy, so the lease was broken.  The combination of our 1st mortgage and 2nd was more than our house was worth (thanks to the dropping housing values), so we were able to negotiate down the SBA loan amount due to about 10% of what we actually borrowed.  You need to work with a bankruptcy attorney to help you with the negotiations.  It is a very emotional time so it is good to have the attorney help you with this.