NEARLY £1000 PER YEAR.

Auckland Star, Volume LVI, Issue 233, 2 October 1925, Page 7

NEARLY £1000 PER YEAR.

LOST IN A BUSINESS. WOMAN'S BIG LOSSES. To enter into business without a knowledge of the finer points is sooner or-later bound to end in failure, and Amy Laird, a married woman, who commenced business in a grocery store and refreshment rooms at Buckland's Beach found that to be so, when after a period of two and a half years her; debts totalled over £3000.

There were eleven creditors at the meeting in her bankrupt estate, held before the Official Assignee, Mr. W. JS. Fisher, this morning.

Bankrupt's schedule showed tihat thd amount owing to unsecured crcditora was £1198 6/3, to secured creditors £IGOS, other liabilities £853, leaving the total debts at £3256 8/11. Tlia total assets were £230 12/, leaving A deficiency of £3025 10/11.

In her personal statement bankrupt said she attributed her unfortunate position to the nature of the business, which she now realised she had been foolish in taking over. The concern was largely dependent on the summer trade, and during the winter months little could be done. Had there been a reasonable amount of trade last 6Utn« mer the effects of the bad winter woiildl not have been felt, but the epidemic, waa disastrous for the beach, and with an* other winter fallowing there wag little hope of carrying on. But for the epidemic things would have been different for the unsecured creditors.

Examined by the Official Assignee, bankrupt stated that she entered into business in March, 1923. Her husband had not been able to work since 1901. When she commenced business she put. all she had into it. ' Site had had no previous experience in the grocery business. She agreed to pay £3000 for the place. When the property was taken over a valuation was made. A creditor: The place was never valued.

In the two and a half years she was on the place she kept books, and considered that they were a fair record. On August 1, of this year, bankrupt put the books in the ha' - .-is of an accountant.

To Mr. Fisher: She cid not go into her financial position until August because the previous winter had been bad, but she had picked up in the summer, and she thought she would be able to do it again.

Regarding her private expenses, bankrupt stated that she had drawn no wages. She had had other assistants beside her two daughters. and the wages had amounted to £10 or £Iper week. From the post ofiice contract she had received £23 per year. She also had a passenger bus service, and paid the driver £5 per week.

Bankrupt to a creditor: There was no truth in the rumour that she was going to carry on business near the old place.

Mr. Fisher: Had you no business adviser to go to before you put your head in the noose?

A creditor stated that an offer waa made to get the place and contents valued, but bankrupt had said she was satisfied.

Mr. Fisher said the bankrupt had an approximate trading loss of nearly £1000 per year.

A creditor: ",Vhat was tho yearly turnover?

It was stated that the total sale receipts until the end of July was £10,----400, or about £4000 per year.

To Mr. Fisher: Bankrupt said there was no opposition, except that it was a "catch"' trade and most of the people had shares in a company. A creditor said bankrupt must have bought hundreds of pounds' worth of goods when she knew she was not in a good financial position. Another creditor: Bankrupt bought heavily in anticipation of the summer trade. The Official Assignee said (he salient features of the .ankrnptcy had come out clearly enough. The bankrupt had taken over a business without due precautions and the tiling had resulted disnstrouslv for those who were concerned. Tic would say there was no wilful intent to do wrong. The meeting closed without further action being taken.