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Covetrus
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northamerica.covetrus.com
Exploring
the world of
corporate
tenancies
and personal
guaranties
Picture this. Your name is Amanda Black. A few years after graduating veterinary
school, you purchase a veterinary clinic from a retiring veterinarian at the edge of town. As
part of the transaction, you enter into a lease assignment for the space – you list yourself,
Amanda Black, D.V.M., as tenant to the lease. From this point forward, you run your clinic from
a fairly deserted plaza at the edge of your beloved city. Months pass, traffic to your clinic isn't
the best and, after a year or two in business, you begrudgingly conclude that business isn't
doing as well as you hoped. Cash flow is tight, and, ultimately, you reach the point where you
miss more than a few rent payments. You default on your lease. Your landlord comes to collect
and, lo and behold, the realities of a tenancy held personally show its true colors. Your personal
liability is at the forefront and, unfortunately, your landlord reaches out to you (and to your
personal assets) to collect on what's owed.
