BANKRUPTCY.

Auckland Star, Volume LIX, Issue 134, 8 June 1928, Page 5

BANKRUPTCY.

SMALL GROCER'S FAILURE. "I don't think there is any question of this man's honesty," said Mr. G. N. Morris, Official Assignee in Bankruptcy, at a meeting of creditors held to-day in the estate of Alexander Guest Thorborn (Mr. W. W. King). Mr. Morris added: '"He should not have carried on so long, and had he closed down earlier it would have been better for his creditors. In a lot of cases nowadays they carry on to the last gasp, and there is little left for the creditors."

Bankrupt's schedule showed there was due to unsecured creditors £217 9/5, and to a secured one £23 14/9. The value of the security given was set down as £43, leaving a surplus to assets of £19 5/3. Other assets were:—Stock, £60; fittings, £50; and book debts, £3 7/8; total assets, £132 12/11. Bankrupt's sworn statement was that he was for ten years employed at the Home and Colonial Stores, and for the last three had been manager at the branch in Dominion Road. When that was closed down he opened a shop at Dominion Road with £50 capital he had saved, and £100 belonging to his wife. A merchant gave him credit for £180, which he was able to pay off. Then a confectioner opposite started to sell groceries at lower prices. Bankrupt then moved to Park Road, where he started with about £200 worth of stock. At that time he owed £180. The business was not a success. He had only drawn 30/ per week, inclusive of goods, out of the business. His health broke down, and he was at present undergoing treatment at the hospital. His wife had no estate excepting furniture which cost £100 about 14 years ago. Under examination, bankrupt stated he never had a bank account. He did not keep a ledger. Mr. Morris said a man had failed previously in the same shop, since he had been in Auckland. No resolution was passed.