Louisianans may be interested to know that School Time, a Louisiana-based uniform store, has purchased KMS Uniforms. The sale of the business comes shortly after the owner of KMS was ordered to shut down by a local district court judge.
The judge's ruling came as a result of the business failing to pay taxes, legal costs and penalties to the city of Monroe amounting to more than $330,000 and spanning over a period of 12 years. The owner of KMS Uniforms will still be held responsible for taking care of these financial obligations.
School Time will soon open its new location where KMS Uniforms was previously located. This is likely considered good news for the former employees of KMS Uniforms, who will be hired as staff. The owner of School Time has commented that more local employees may be added as time goes on. He has also stated that all previous orders made with KMS Uniforms will be fulfilled.
This story provides a lot of food for thought for those interested in or involved with the Baton Rough business community. The prospect of acquiring an existing location, staff and inventory can be a daunting task, especially when considering that most businesses being acquired must continue to function in the midst of a transition.
For those who are running businesses, this story can serve as a cautionary tale. The unfortunate legal situation that the owner of KMS Uniforms found herself in could happen to any business owner for a variety of reasons, ranging from economic woes to the orderliness of the businesses records. Maintaining a well-managed financial plan and ensuring that all taxes are paid on a timely basis can be overwhelming for those who are not familiarized with the intricacies of purchasing and maintaining a business.
Business owners experiencing financial problems may be well served by seeking financial and legal help. For those who are interested in selling a business, or who must close a business for financial reasons or otherwise, seeking legal assistance can make the difference between a successful and unsuccessful sale. Not only do you want to hand over your business assets on favorable terms, but it is also vital to ensure all the loose ends are tied up before ownership changes hands.
Source: The News Star, "New owner takes over KMS Uniforms; judge orders store closed because of delinquent taxes," Scott Rogers, July 19, 2012