I have frequently posted about DH & I having the opportunity to purchase a closed bakery...lock stock & barrel. It was a dream set-up with established clientele and a given that it would be successful. We put some earnest money down and signed an offer to purchase but the sale will not be going through. I won't be opening my bakery...not now, at least. I just want to cry and cry and cry some more. The oppportunity literally just fell into my lap when I wasn't really looking for something like that to happen. I guess I should've known better. It wasn't a problem of financing, but rather the seller not disclosing some very important info about the standing of the store with her suppliers, banking info & not letting me look at the books whatsoever. I was unable to give a complete financial analysis in my business plan because of not being able to see the books. It wouldn't have been important, had I only been purchasing the equipment, but that wasn't the case. When I found out about the outstanding bills she had with suppliers I got nervous because she was expecting the sale to include all standing orders she had with them and everything that came along with it, including the past due bills...but she didn't share that fact up front, only after I'd signed the offer to purchase. And she still didn't tell me she owed them $$!!! I had to call the suppliers to find out details of the accounts. It was so bad that 2 of her suppliers are considering placing leins on her equipment/property within the next 30 days if they don't receive some form of payment.

The bank told me that I had everything I was supposed to have in my business plan, and then some -where the market info and my marketing and sales plans were concerned. They had no doubt that I would make a tremendous success of it. And as for the financial end of it, we qualified for more of a loan than we were asking for. BUT - they would not be able to approve the loan without at least a copy of the last tax return of the bakery, which she didn't think she had to turn over to me. The bank really wanted a total accounting of the business so they could get a better handle of what they'd be getting into - in other words, they needed to know the financial standings of the business so we would know what we were starting with in order to further determine the viability of the loan. That meant looking at the books, but she wouldn't even let the bank alone see them....even if the bank and I both signed a confidentiality agreement.

Here's the kicker, though....the bank I was dealing with turned out to be the same one she banked with. Funny thing was, in our initial meetings, she told me she used a completely different bank! I still cannot figure out why she would've lied about that?!? In the end, after I did all the leg work I could do and made up my business plan (MAJOR PITB) the manager of the bank called me yesterday and told me..."Because you have come to us as a potential customer and gone through our loan process I can say what I'm about to tell you...but I can't give you details, so please don't ask me any questions because I am legally unable to answer them. What I can tell you is this: This bank would in no way endorse the purchase of this business as an entity. It would not be a viable option for you or for us at this time. We strongly discourage you from purchasing this bakery in the manner you have considered it up to this point. However, if you would want to purchase the equipment on its own, outright from the business itself, and if the owner is interested in that, just give us a call and we will get the paperwork done for an equipment loan, based on the info you've already given us, and have a check for you by Monday. That we can do, but the full purchase of the business via a business loan through this bank is not something we will be able to help you with at this time"

So, the only thing I can figure is that since it turned out that she actually banked with them, instead of who she said she did, that they know something I don't about the financials of this business. ??? But they're unable to say anything, really , because she's a customer.

When she started not wanting to open the books for or to me, my DH said he had a bad feeling and that it would probably be the reason that this sale was not gonna happen. She had also had 2 other sales of the business fall through, and I think now we know why. DH thinks she's just looking for someone to come along that can write her a check and be done with it. Anyone who has to deal with a bank and getting any kind of loan is going to have to look at the books and for whatever reason she doesn't want that to happen.

I am just so disappointed, but I guess it's all a blessing in disguise, I hope. One good thing is that my DH is so sad for me that he's willing to go ahead and build me a kitchen so I can get legal!! lol We're putting up one of those big metal building type things to house all of our landscaping equipment and an office...it's on the far side of our property. There's going to be a bathroom there, so we have to put in it's own septic tank...and the health dept. told me that since it will only be one toilet on the tank that we wouldn't have to put in a grease trap!! YAY! That's $5,000 we won't have to spend now!! It's going to have it's own entrance from outside and be completely closed off from the equipment bays. We already have the stainless 3 compartment sink, so all I have to hunt down is an oven, cooler (fridge) and freezer, which I want to all be commercial if possible, and a small cabinet to put a regular sink in....then some stainless work tables and shelving, etc. It's a lot easier than opening a whole bakery, that's for sure!! And there's a separate driveway that leads to it, as well, so I can easily have people come by to place orders or pick up or do tastings, etc. I'm still bummed about the bakery thing, but maybe this will work even better...we'll see. Maybe my new slogan should be something like: SugarBelle's - The cake will rise again!! (play on words...the South will rise again...lol)

Sorry so long....just needed to share and vent. Haven't even told my family yet...just ya'll. Thanks for letting me get it off my chest.

JennT, I'm sorry the deal didn't work out for you! I really like that you're going to get your very own on-site kitchen out of it though. I agree that it really could be a blessing indisguise, especially if she was trying to sell you a failing business!!!

I'm so sorry. I had read your initial post when you discovered the bakery and I was so excited for you. I can only imagine your frustration in having done all that planning. Yes, it is a blessing in disguise. What a coincidence with the bank!!

Good luck with your business!!!
Angie

WOW I am sorry that you put so much work into it and it did not happen - I am sure your new kitchen will be fabulous and business will be booming!

Jenn that is so great! I'm excited for you! It's too bad things didn't work out but where God closes a door he opens a window. Best of luck to you with this exciting new venture with no previous mess attached! You'll do fabulously- No Doubt!

This is definitely a blessing... what a mess you could have been in! Life is a rollercoaster ride. Just hang on tight! I'm very sorry this didn't work out for you the way you thought it would, but hope that something great is just around the corner.

Well, first of all I am truly sorry for your disappointment. However, I believe this is a blessing to you! Thank God you did not get strapped with her mess! How dare she be so blatently dishonest!! I am absolutely appalled that soemone would go to such lengths to deceive another person, she really tried to screw you over. That makes me MAD!!

You will come out of this so much happier (and wiser). I know it was a huge blow but really, in the long run you are going to be so much happier, and more successful than you dreamed! As my DH has said, some mistakes God won't let you make. Many wishes for a successful business that brings you a lot of joy!

I´m so sorry for you. Everything sound so good in the beginning, but only think of what would have happend if you had had the total money and didn´t needed the bank ....

I wishes you all the best for your own on-site kitchen. As you said: The cake will rise again!!!

JennT, so sorry!!! I remember how excited you were. Good things happen to good people, and if everything would have gone throug on the bakery sounds like it would have been bad. So may your new kitchen be filled with many cakes!! I am sure your a good person so something good will come of this!!

Cady

Jenn, what a disappointment in not being able to buy the bakery. But being in banking (commercial lending secretary) I have seen times when after the bank goes thru either analysis of the business to be purchased, or after ordering a property appraisal, the lender will inform the prospective borrower they are not getting a good deal, which I would be thankful for if I was the prospect. Being they are willing to sell you the equipment, dollars to donuts they lent her the money for the eqipment and have the lien on it. Like the others said, this was a blessing in disquise. Sounds like you will come out of this just fine!

Deb

JennT - that's a bummer! But every cloud has a silver lining. The bakery obviously wasn't meant to be, but you have something new on the horizon. Good luck!

Thank you so much, everyone! I'm already feeling better about it...after I cried a few bucketfulls...lol. MomLittr - supposedly the equipment was paid for in cash...but that could be false, as so many other things turned out to be.

I just got a call from the contact I had at one of the suppliers, Sysco. They left me a message stating that they thought I should know that the IRS had contacted them today about the bakery in question and asked if they should put them in contact with me!? Of course, I promptly called them back and said don't even mention my name in conversation with the IRS!!! Don't want to get all tangled up in that, for sure! It doesn't really matter because I don't know anything anyway...lol. Not sure why the IRS would be talking to a supplier if it's a tax issue, but who knows. Sooooo....looks like it might have all been about taxes. I bet she owes the IRS and that would've been evident had we had a look at the books! The more I find out and the more I think about it the MADDER I get, instead of sad. I did have better things to do if it never would've worked out, than all of that planning and drawing up a business plan and working on logos and printwork for ads and testing menu items and recipes, etc, etc, etc, etc!!!! It makes me wonder if you can sue people for things like this!?! Not that I would, but it might make me feel a little better if I knew I could, though...lol.

JennT sounds like you would have to get in line to sue her. lol

I know you were so excited about the bakery but it looks like God has other plans. And most assuredly if they are His plans they will be better.

How great that you will have a kitchen at your home!!! Wish I could do the same.

Good Luck on your new adventure.

As an accountant I'm appalled at her behavior! The nerve of some people! But, as everyone else has said, maybe it's a blessing in disguise! Sounds like the plans for your kitchen are coming along. Maybe you should advertise in front of her store to grab the customers that would've been yours had you been able to buy it! It would serve her right!

Well...I already have one of her previous clients...a local coffee shop that's in a bookstore. I'll be selling them muffins, cake balls, etc. And I already have all of the advertising rates and spots in the papers, etc. that she had. Got that set up a few weeks ago. I'll just be changing the contact info on those, but will be keeping them...only not starting them for a couple of months yet since the bakery was to open in April and now I won't have my legal kitchen for a little longer than that.

I find comfort in knowing that it probably won't sell any time soon, and when it does it will most likely be strictly an equipment sale. I seriously doubt anyone who's worth their salt in the business world will buy that place the way she wants it to happen...without any financial info shared. And if someone does buy it blindly like that, they won't last very long, most likely. Whether they're capable or not, if it's wrought with supplier problems it'll be hard to really make it much of anything, least of all a big success.

Ya know-they say the best laid plans....-but things have really turned around for you-what a better way to have your bakery-right near home-you don't have to make the time/drive back and forth, you have control of everything because it's you doing it from top to bottom-nothing "left over" from someone else-no surprises. Things to have a way of working themselves out for the better-glad it happened now than afterwards and the creditors etc hounding you for things you have nothing to do with until after the fact! Congratulations on your new bakery! And a superbig hug for DH for doing all this for you-maybe it should be "SUGARDADDY'S" or you can make a special something and name it for him!

I am so sorry this has happened to you. but you know everything happens for a reason and I am sure your bakery will be right around the corner and you wont even expect it. good luck with everything and I hope things turn out the way they should.

JennT, Nanni took the words right out of my mouth. This will be YOURS from the beginning. Not someone else's left-overs. I'm sure you (along with your wonderful hubby) will make a great business. Something you will be very proud of. We will all be there with you (If only in our hearts) ,giving you all the support we can.

What about purchasing all her equipment like the bank suggested? That way you wouldn't have to hunt each piece down and you can test it to make sure it works? Or do you just never want to see this woman again?

Good luck to her finding someone not needing to go to a bank. Not in this business!

I know it doesn't feel like it now but you got so lucky. The woman sounds awfully suspicious to me. Especially if the bank manager risked saying that to you. Hope everything works out with the new kitchen! And I love the cake will rise again! So cute!

JennT,

What a Horribly Sad Story! Getting your hopes up, and doing all of that leg work, only to have the rug jerked out from under you! That's just awful! And the Nerve of that Woman! I just don't understand people anymore!

I hope you do a super Thriving business in your new kitchen! I'm sure you will, I've seen your gallery! Beautiful Cakes!

Best thing to do is put the past behind you, and go full steam ahead with plan B! She will get hers in the end, they always do.

Congrats on the new Kitchen!

You want to give us her phone number and we can all call her and tell her that the cakes are comming to get her!

Just kidding just thought it might bring a smile

Hey Jenn: I know how disappointing this must be for you. When I was 19 I bought a coffee shop/deli & the person who sold it to me "cooked the books" so to say & even though I had someone look over the books and everything seemed to be in order it wasn't. Unfortunately, I learned this too late & was completely overwhelmed. I ended up being able to get out of it eventually & now just have a very small shop.
My suspicion is that she either didn't keep financial ledgers or neglected them & thats why she wouldn't show them to anybody.

I'm disappointed for you, but I'm very glad you didn't have to learn this very expensive lesson. I'm also excited for you that you get your home bakery. I wish you nothing but the best of luck & have a feeling that you will do very well.

Hey there--I am so sorry you've had to go through all of this, not just all the work effort, but the emotional roller coaster!

I just had a similar thing happen when trying to buy a house--it was perfect (2 kitchens even!) and it just looked like I was going to get to live a dream I never expected to get to live...until they refused to go through with home inspections! They said they would sell it to us at the price we offered, as long as we didnt ask for home inspections...well NO WAY!

Things happen for a reason--you will love having your own legal kitchen right in your backyard--enjoy it!!!!!

What a disapointment I'v been watching for a post to see if all went well but I see it's not but like you said this could be a blessing in disquise.

Sorry

You know as a cake baking accountant, I can only tell you that you seemed to have had a very lucky escape, so don't be feeling down about this particular business not coming your way.

Imagine if you and your DH had the money to just write a cheque without having to get finance from your Bank. Within two months you could have been sitting there with no equipment or worse still discovering that her debts were way beyond what you ever would have paid to set up your business from scratch and that the only way to keep everything was to pay them.

If you have to start this business from scratch and its what you want, you will do it and you won't have someone else's failures hanging over your head.

Just think there would have been bad credit ratings for the address never mind the name and that lady wanted you to use her name along with your own. Some people really have such a hard neck!

Chin up, you'll have your bakery!!!

I would definately look at this as a blessing in disguise!!! DEFINATELY!!

and now your going to have your own kitchen right next to your home...that's the BEST!! Good luck with the project!

Thank you all so much! Your support and encouraging words really mean so much to me!!

Izzybee - I originally tried to buy just the equipment and inventory from her alone...with out buying the 'business'...but she refused my offer. Now I know why she wants to sell the business along with the equipment, etc. She wants to basically put it off on someone else so that they can end up with the headaches she caused, as well as the blame and responsibility to all of the suppliers, etc. And no - I do not ever want to see or speak to this person again! lol You hit the nail on the head!! She's called me a few times over the past 2 days and I just don't even answer the phone. There is absolutely nothing we have left to discuss and I will not be taking her up on any offers she might want to give me...even if it's just to buy the equipment. My luck, she'd give me 'proof' that there's no liens or anything on any of it and a month after buying it I'd end up with more trouble. It's just not worth it in the long run. We know too many people who own, or have owned, restaurants that can help us with connections in finding the equipment I want for my kitchen at good deals. I'll take that any day over dealing with someone who's already been so deceitful.

You go girl!! I know that you will be a success with your "home bakery". At least you won't have long commute!! Your hubby is great. We are thinking of doing the same thing for me. Good luck!
Leslie
ncdessertdiva

JennT - I'm so sorry to hear about this mess. Like you said, there are so many other things you could have been working on instead of the business plan etc. to purchase this bakery. At least all of the work wasn't a waste. You have advertising space all set, tested recipes for your business, the coffee shop client. We live and we learn, right? We learn from our experiences, and I bet this experience will make you and even stronger business woman! Congrats on your new kitchen. I can't wait to hear all about it. Good luck!!