Complaint Review: Phoenix Business Agents

Mr Peter Abbott telephoned and spoke to myself asking if we were thinking of selling our business.  We had had a difficult three years throughout this recession and we were unable to retain our full time staff. 

I was now 73 years old therfore was unable to be as involved in the business as i was before so was keen to discuss the possibility of selling our business.

During the appointment with Mr Abbott we discussed our concerns that our business would not be worth a great deal as the profit was low, despite the yearly takings being reasonably high.  Mr Abbott assured us that our business was worth at least 100.000 which we were both surprised but very pleased to hear this.

Mr Abbott then advised that we put it on the market for 125.000 which would allow for perspective buyers to make an offer and would also cover the 6000.00 fee charged by Phoenix if and when a sale was completed.

Mr Abbot went on to explain that we would actually only have to pay a further 5,000 as a 1000.00 was due immediately as payment up front, and that this fee would be repaid to us at the end of the agreed 26 week period, in the event that Pheonix had not secured a buyer.

We asked Mr Abbott if he felt that the business was really worth 100.000 to which he assured us that is was and said that they had sold many similar business and was confident that they would achieve this price for our business. 

My wife had to attend a client therefore was left to finalise the arrangements.  At this point no contract had been given to us to read through.

Several times during the appointment i asked Mr Abbott to confirm the fees that we would be required to pay, should Phoenix agree a successful sale and also to confirm the fees payable in the event that Phoenix did not mange to sell our business within the agreed 26 week period. 

Each time we were assured that there would be no fees payable other than those detailed above.

At the end of the meeting, inour busy reception area, Mr Abbott produced their terms and conditions and asked my wife to sign the document and pay the initial payment of 1000.00.

We explained that we were not expecting to pay any monies up front or at all and did not have such a large sum of money available at this time.  Mr Abbott then asked us to pay a nominal deposit of 300.00 which we paid by cheque. 

Mr Abbott completed an invoice confirming that we had paid a total of 300.00 including 50.00 VAT at 20%.  At the bottom of the receipt he wrote that the balance would be debitied from our card on the 28th March 2011.  As agreed, the sum of 950.00 was debited from our account on this date.

During the first 16 weeks we had a phone call from the Phoenix to ask us for a convenient time to bring a prospective buyer to view the business.  

We arranged a date and time when no staff or clients would be present, however one hour before the visit we recieved a phone call from the Phoenix to say the perspective buyer was unable to keep her appointment as she had to work.

We phoned the Phoenix after 18 weeks as we  were concerned that the business had been overvalued to which they replied that it had not been overvalued but reluctantley agreed to reduce the price by 10.000 to 115.000

Towards the end of the 26 week period, having not had any viewings and only one enquiry from Phoenix, I telephoned to advise them that we would be serving notice.  At this point, and for the first time, we were informed that a payment of 3000.00 was sue as payemnt for their services (what services would they be referring to?).

We had not had one viewing or any feedback from Pheonix as to waht steps they were taking to market our business, other that to place an advert on 3 websites.

We have had countless phone calls demanding the money and slamming the phone down when challenged on the way they had decieved us and tricked us into giving them money as well as trying to take more from us for overpricing our business so much that it had no chance of ever selling.

We have had threatening letters of court proceedings being taken against us if we dont pay them the 3000.00.  We are now recieving letters from Credit Collections (U.K.) LTD giving us a few days to pay them this money or court proceedings will be taken against us.

We do not believe that the Pheonix ever had any intentions of selling our business and made no effort to do so, expectin us and many other unsuspecting businesses to band over a 3000.00 fee, under terms and conditions we were misleadingly encouraged to sign.

We were never verbally made aware of any monies to be paid to them for not selling our business.

My wife and myself regret the day i ever agreed for these wicked people to come into our business and deceive us into trusting them to sale our business.  Our hearts go out to all others that have had the unfortunate phone call and have had to experience the misery of dealing with these sharks.

We will not pay them a penny of this money and will fight this if and when they carry out there threats to take us to court.  I do hope and pray that justice will be done and that all of their victims will be repaid the money that was taken from them by false pretences