A BAKER'S BANKRUPTCY.

Auckland Star, Volume XLIV, Issue 28, 1 February 1913, Page 5

A BAKER'S BANKRUPTCY.

START ON BORROWED CAPITAL.

A petition in bankruptcy has been filed by Arthur Edmond Thomas, baker, of Great North Road. In his statement to the Official Assignee the bankrupt states that he commenced business as a baker in -March, 1911, purchasing the business of Andrew Robertson for £500. of which £200 was paid in cash and the balance secured by promissory notes at ti months. The £200 was borrowed from Mrs A. Allen at interest. About three months after baking over the business he suffered a loss through baking, which he attributed to new flour, and his trade fell from 1,000 to 600 loaves a day. This loss was only picked up gradually, and after some months. At the same time he suffered a lo&s of £100, which was drawn from his account and not recovered. He carried on the business for some time, hoping to make up the leeway, and eventually, in September. 1912, he found that his position was not improving, and he informed some of his larger creditors, who agreed to give him further time for paj-ment. Next month lie sold the business for £450, with book debts £57, and stock £60. Out of the proceeds he paid £50 to Robinson, this being the balance owing on the sale. Of the remainder of the proceeds, after deducting commission and rates, £330 was distributed among the creditors, and £50 handed to the Official Assignee, £107 being still owing. Bankrupt believes that in selling he got a better price than he should have if his position had been known. The deficiency is placed at £320. the assets being £163 0/4. and the liabilities to unsecured creditors £502 5/2. A meeting of creditors will be held on February 4, at 11 a.m.