A friend who is a small business owner recently moved premises to avail of cheaper rent. The week after he signed the lease and moved in, the landlord rang him to say that he had gone into receivership but that “he [my friend] didn’t need to worry”.
What does THAT mean? First of all, what might the landlord’s motivation – did he think he would be better off with a sitting tenant in his property if it came to a winding down? Or could it have been as grubby as he needed my friend’s deposit to tide him through a few days.
Either way, what is the legal situation and what can/should my friend do? Should he join the queue of creditors for his deposit back? Is he likely to be turfed out of the premises? This friend would not be the most questioning of people, and didn’t even suspect there might be an issue until I suggested it to him. He can’t even tell me if the lease is signed with an individual or a company – although I would presume the latter ( - only companies go into receivership, right?).
As you can see, I am a bit clueless – any tips would be much appreciated.