UNPROFITABLE RESTAURANT.

Auckland Star, Volume XLVII, Issue 155, 30 June 1916, Page 7

UNPROFITABLE RESTAURANT.

■ 1-1 • - PROPRIETOR'S BANKRUPTCY. LANDLORD GETS ASSETS. A meeting of creditors in the bankrupt estate of William J. Sneller, restaurant , proprietor of Shortland Street, Auckland. . was held yesterday afternoon by the ■ Official Assignee (Mr. W. S. Fisher). . The bankrupt's schedule showed assets ( (furniture and fittings) £130, covered by , bills of sale for £78. and liabilities to ( unsecured creditors £511. ' 1 It was explained by the Official Assig- , nee that Mr. A. Kidd, who had a claim j for £180 for rent, took precedence over , all the other creditors, including hold- ■ ers of the bills of sale, so that there was ; not " a brass farthing" in the estate for , any of them. He wondered why the two i secured creditors had not been more j awake to their own interests. He was particularly sorry for two creditors, the butcher and the milkman, whose accounts amounted to £133 and £43 respectively. The bankrupt, placed on oath, stated that for some months after he started in 1913 he did fairly well, employing about eleven hands, but the strike set him back, and be was just recovering when the war broke out. He went on in the hope that he might pull through eventually, but trade fell oil, and priceß went up. By degrees be reduced his staff to three, and himself went to work in the kitchen. He had kept a set of books, but be admitted that be did not kuow his exact position until shortly before be called his creditors together, though he knew some months earlier that he was in debt to the extent of over £400. The Assignee remarked that the bankrupt had no right to go on when he knew he was insolvent, and had nothing of his own to lose. He was simply carrying on the business with his creditors' money, and most of them had been badly let down. He was surprised that they seemed to take it so well. Tlic bankrupt reiterated that he had •hoped, by working -hard himself and cutting down expenses, to pay his creditors ultimately. In answer to a creditor, the bankrupt said that he did not consider bis rent ( £20 a month) unreasonable, considering the locality. To this the creditors demurred, remarking that it was an hotel rent. Mr. Mulgan (for the bankrupt) remarked that the latter had not gone back much in the past year, except in regard to Ms rent. The butcher's and the milkman's accounts had been owing all that time, and they had acquiesced in the position, as had also the landlord. A resolution was passed, asking the Assignee to facilitate the obtaining of the bankrupt's discharge, the mover remarking that the man had worked hard and appeared to be the victim of bad times.