IN BANKRUPTCY.

Press, Volume LVI, Issue 16985, 6 November 1920, Page 6

IN BANKRUPTCY.

ESTATE OF REED BROS. Tho first meeting of creditors of Harry Edison Jtced and Henry Lester Reed, tradju" as Keed Bios., pastrycooks, etc., was held at the Oiliciul Assignee's olfico jesterd"i'he statement showed: -Unsecured _ creditors £342" 2s 9d, secured creditors £STo (e»timated value oi securities £3i>3)> balance •.10. Assets: Cash in hand £9 4s 7d, surp.us irom securities £18, total assets £27 4a jcl. Deficiency £311 18s 2d. The principal unsecured creditors were: - Davidson and Wauchop £145 15s 6d, Royds Bros, and Kirk £105 6s Gd, J, h.,lulloch A2l 17s, J. Rattray und Sons £19 lis 3d. The .secured creditors Vero: —Repatriation Department £375 value of security j?200); State Fire Department £193 (insurance on building ■ destroyed by In a wittcn statement handed m, bankrupts said that on returning from the front they secured an advance, from the Repatriation Board, £*200 cacli, with which to start in business as prtstrycooks. The £400 was Epent on a motor delivery car &nd plant, utensils, and" stock. They also put in £100 themselves, ~5() each. Tho car got out of order, and waa a source of expense; otherwise everything went well at the start, but later thev found that conditions had materially altered- whilo they were away, and that .substitutes were extensively used. They put in tho best, quality material, but found tliey were selling at a loss. Tlioy were, handicapped by the lack of labour-saving machinery, and tho sugar shortage played havoc with tho business, until in July* and August they' could' not get supplies. They were over-stocked with, orders, but could not fill them on account of tho sugar They were against, keen competition, and found that the big man had an advantage over the-small man. A fire. occurred. in October, but the premises were not sufficiently covcred by insurance. The Repatriation Department held the insurance policy, and had received tho insurance moneys, and had also taken possession of tho motor-car, which was valued at- £200. After the fire they could not carry on. All they took from the business was £2 per week each. Mr Sargent, for tho bankrupts, said the Repatriation Board did not have a registered biil nf sale, but it was questionable whether I the car could bo recovered. Tho insurance on the stool: clearly should have gone .to the estate, and not to" tho Repatriation Departir.rnt. The Jffsigaec' aaid he would tako legal advice regarding the raotor-car, and would apply to the Repatriation Board for a refund of* £118, the value of the stock-in-trodo covered bv the insurance, but not by the bill o? sale. The bankrupts had kept reasonable books, and appeared to have made a genuine effort to make ft- success of the business. If tin- A'llß were available, the estate would payabout Ss Sc3 in the £1. The business started off very we!!, but tailed off when the sugar shortage tame. The creditors lcit the realisation oi this assets with the Official Assignee. , ! " i .• !