We as a vendor sold goods to a hotel. They did not pay the invoice and it is seriously delinquent. Since then, a new management company has taken over (same owners) and they want to start ordering. We explained that the old invoice needs to be paid before they can order again. The owners state that they paid the old management company and it is not their responsibility anymore. We think it is. Who is responsible?
1 Answer from Attorneys
Depends. Are these restaurant supplies? Gift shop merchandise? If so, then the new owner is responsible under the Bulk Sales Act. But that applies only to businesses that sell goods from inventory. Check to see if there was a change of ownership or just management. And sue them anyway, you never know what will turn up in discovery.