HANDED THE KEY OVER.

Auckland Star, Volume LVIII, Issue 58, 10 March 1927, Page 10

HANDED THE KEY OVER.

A BANKRUPT GROCER. OPERATIONS IN COUNTRY.

UNSUCCESSFUL VENTURE. The business dealings of Bob -Tolli: Saricb, grocer, of Morrinsville. were investigated at a meeting of creditor"

this morning. Air. V. H. Sanson, Official Assipnec at Hamilton, presided, and said that the meeting had been called in Auckland because of the number of creditors ir the city.

The schedule showed that the bank rupt owed £1225 8/7 to unsecured creditors, and £4073 8/7 to secured creditors. The securities were estimated to be worth £3950, and the other assets were set out at £952 9/, leaving

a deficiency of £390 3/3. Bankrupt produced a written statement which showed that he commenced business at Morrinsville in January 1921, with a capital of £200. He had four years' previous experience as n grocers assistant. Trading was successful for about three years. He then found it necessary to get further accommodation from merchants, and, on account of increased capital and general tinancial stringency, he was not able to trade at a profit. Fairly heavy losses were incurred in 1924 and 1920. Bankrupt decided in July, 1920, to place the matter before his creditors. In blie course of an examination, lie said that he carried on the business from July as a manager for a committee of his creditors. There was a small net loss on trading during the six months that followed. Until the beginning of 1920 he had always paid his secured creditors, but he then found that his position was becoming difficult, and consulted his secured creditors as to whether he should file. A sum of £1250 was owing to the largest creditor at the end of 192-"), against which a *ill of sale for £1000 was held. Official Assignee: Would the amount of that debt be floOO?—It might be. Under further examination bankrupt said that he had been asked for the money in respect of this debt, but had not been pressed for payment. Early in 1920 he had reduced this account and increased his other creditors' accounts. Official Assignee: When was the shop closed?—On January 29. Did you take any steps to inform the creditors' committee of what was being done ? —No. What happened?—l was asked for the key and handed it over. The Official Assignee was instructed by resolution to contest the security over the stock. In regard to the realisation of the stock it was decided that the matter be left in the hands of the Official Assignee and a committee of creditors, with power to act.