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Leeds Case

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The Leeds Livery[1]

Hugh Tudor had retired early from his position as office manager in a large company. At age 55; he had a reasonable pension and some capital that he had saved. Hugh had lived in Milville for 30 years and was reasonably well known in the community. He was active in a service club, on the executive of a soccer league and a hockey league, and worked with some local charities and fund-raising activities. He was a physically fit and active man who enjoyed challenges and was growing restless in his retirement.

Hugh wanted to invest in a small business, not only to add to his income, but also as an entrepreneurial venture that would be challenging and interesting for him. He was considering buying The Leeds Livery, a British pub located in Milville. The pub was located on the edge of town, on the main road running through Milville. It was a five-minute walk from the GO train station.

Milville is an Ontario town of 21,000 people. In recent years, its population has grown quite rapidly as people have moved from the Greater Toronto Area (GTA) into less crowded communities with lower real estate prices and a community lifestyle that suits them. Most of these recent arrivals are reasonably prosperous family people who commute daily to professional jobs in the GTA.

The Leeds Livery is presently owned by Barry Bilkmore, who lives in Georgeburgh, which is 30 km from Milville. Bilkmore, who practices corporation law in Toronto, bought the pub as an investment 5 years ago, in 2004. After the performance of his high tech mutual funds had been disappointing, he cashed them in and bought The Leeds Livery.

The previous owner had been Henry Montagu, who had managed it himself and had actually lived on the premises, in a modest apartment over the pub. Henry sold The Leeds Livery to Bilkmore before retiring and moving back to Manchester, England. In the…...

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