BANKRUPT DRAPER.

Auckland Star, Issue 291, 9 December 1925, Page 9

BANKRUPT DRAPER.

A TAKAPUNA FAILURE. DID NOT KEEP \a. LEDGER. HIGH VALUATION" OF STOCK. A bankrupt, who told the Official Assignee that he did not keep a ledger and placed a high valuation on his assets, met his creditors at the office of the Official Assignee (Mr. IW. 6. Fisher) to-day. _ The bankrupt was William at. Uair Crookbain, draper, of Takapuna. The schedule showed that bankrupt owed £1067 3/8 to 22 unsecured creditors. His assets were set down at £998 15/8, including £950 stock-in-trade, fixtures and fittings £40, and the balance in cash and book debts. Mr. Fisher said that he had a valuation made of the stock-in-trade, which placed it nt £678. The schedule showed a nominal deficiency of £68 8/; but this was at a valuation of the assets that was not supported by the official valuation. In a written statement the debtor stated that he took over a shop at the Strand, Takapuna, on September 1, 1923, for the purpose of carrying' on 'business as mercer and draper for five years. He purchased £1700 worth of stock. His position was, satisfactory until early last year, when he obtained a loan from one of his creditors. He was unable to repay the money on the due date anti arranged for monthly payments until the debt was Teduced to £140. A judgment was obtained against him for that amount; and, under this pressure, he was-compelled to go bankrupt. He considered that, if he was allowed to carry on for three months, he could place £500 before the Official Assignee. Examined, bankrupt said he was 28 years of age. He first started in the drapery business in 1921, in Ponsonby Road. His stock on commencing business, amounted to a value of £300. Before shifting to Takapuna he was solvent. His liabilities were about £800, and he valued his assets at £1000. He had gone into his position in the February previous to removing, but not in the September. In May, 1924, bankrupt stated, he valued his stock at £1600. Mr. Fisher: Didn't you overvalue your stock? I don't'think so. Have you been steadily selling your stock and buying very little?— Yes, because I considered the business did not warrant it. Have you gone into youj. position since at Takapuna?—Yes. .Thoroughly, or just in a sort of vague way?—l took out a balance in July, last year. Have you not taken out a balance siucc then?— No. Don't you think it would have been advisable to go into your position since then?— Yes, it would have. Do you honestly believe that if you had been given extra time you would have been able to pull things together? —I do. Well, of course, creditors can form their own opinion. Why do you think so?—I think last year was one of the most strenuous years in the drapery business since 1920. Things must recover. Are you anxious to carry on this business on behalf of the creditors?— Yes. You are not married?— No. Is anyone dependent oil you except your mother?— No. i Have you any relative or friend who could assist you •to make an offer?— No, I don't think so. Recent Representations. A creditor said that bankrupt had informed him on November 6 that his liabilities were £700 and his assets £1000. • Mr. Fisher (to bankrupt): What do you give by way of explanation? You now show your liabilities are £1000. A creditor: There have been new debts during November. Mr. Fisher: Do you think you were justified in obtaining goods on credit as late as that?— They were forward orders. I gave no fresh orders. You did not keep any ledger did you? —No. Then the statement you pave was purely guesswork? —Not exactly. What do you think your turnover was? —Last year it amounted to £18,000. 'And your gross profits?—A third of the turnover. After questions of detail had been asked by a number -of creditors concerning the "loan which led up to bankrupt being forced to file, Mr. Fisher remarked that, in the matter of realising the assets, he did not as a rule favour carrying on a business. There were always leakages when a representative of a body of creditors was operating on their behalf. „ • ■ A creditor moved that the business be sold as a, going concern, and two creditors were appointed as a committee to act with the Official Assignee in arranging for the best realisation of the assets.