RESTAURANT FAILURE.

Auckland Star, Volume LXII, Issue 127, 1 June 1931, Page 3

RESTAURANT FAILURE.

m ■ ■ TRADE DEPRESSION BLAMED BIG DROP IN TAKINGS. COMMERCIAL GRILL VENTURE. Depression in trade fince the beginning of 10.30 was given as the cause of failure of Henry Curran and William George Norton, proprietors of the Commercial Grill Room, Chancer*' Street, who met their creditors in Auckland to-day. The official assignee, Mr. A. W. Watters, presided and bankrupts were represented by Mr. B. Gold water. The joint financial statement showed claims of unsecured creditors amounting to £1140. which was the total of debts. Assets were valued at £107(5 13/'-. Cur~ans separate schedule showed total debts of £30 16/5, and a deficiency of £97 3/7, while Norton's showed total debts £167 12/11. There was a surplus in his securities of £71 14/4, and a final surplus of £107 12/11 was shown. The business was started in High Street at the end of 1919 by bankrupts and a third partner, after borrowing £900 from the Repatriation Department. During the tenancy* in High Street a sum of about £1200 a year was made. The third partner was paid £4.30 for his share. Owing to the premises being pulled down they had to move, and they went to the corner of Chancery Street and Courthouse Lane, the cost of moving and alterations being £1200. That was paid for in four months. The business was successful up to November, 1929, trading for the year ending November. 1929, showing a net profit of £502. The gross profit was £1022, and takings for that year were £11,278. Business then dropped considerably, and takings for the year ending November, 1930, were £8(521, the gross profit being only £351. Their drawings amounted to £520, so that a loss of £170 was made. From December 1, 1930, to March 31 last the takings were only £1547. On May 13 they met a committee of creditors, who, after realising that it was impossible to carry on, instructed them to file. During the course of examination by the Assignee it was mentioned that the rent was £17 10/ a week and was reduced to £10 last March. It was decided to authorise the Assignee to negotiate with the landlord for the disposal of the assets.