Business lease question...

Question

ok my uncle and my dad signed a three year lease because they wanted to open a smog and auto repair shop. my dad was a ASE master certified technician with over 20 years of experience while my uncle is just a novice mechanic. well me rented a space in a pretty big building but a year into the business the neighbor to our shop killed my dad and shot my uncle in the shoulder then commited suicide..this happened about a year ago and we have been trying to keep the shop alive but my uncle cannot keep it open because he is just a beginner and he does not have the experience to fix cars.. is there anyway we can get out of the lease?

Answer 1

I doubt you can get out of the lease easily.  It might depend on whether you signed the lease as an individual, meaning you're personally liable for the rent, or if you signed it on behalf of the business, as a partnership, LLC, or corporation.  

First, is there any possibility you can afford to hire an ASE certified mechanic to work in the shop to take over all the things your uncle can't do at this time?  

If not, you probably should look for someone to take over the shop AND the lease, if you haven't been doing that already.  You might want to check with the Small Business Development Center (SBDC) at your local community college.  They have counselors who can help you work through problems, and may have some ideas, or might even be working with someone who wants to open a shop and can't find a place to put it.  

If nothing else, you may have to just close the doors soon to minimize any further losses and just file bankruptcy (business for sure, personal if you're on the hook for the rent.  Good luck.  

My sympathy on the loss of your father.