A TAILOR'S FAILURE.

Press, Volume LXII, Issue 18724, 22 June 1926, Page 6

A TAILOR'S FAILURE.

—-* UNSUCCESSFUL PARTNERSHIP. A. meeting of the creditors of , John , Bell McClymoat, tailor, lit Tancrcd 6trect, Linwood, was lioJd yesterday morning, Mr A. \V. Matters, Official Assignee, presiding. Mr I-'. W. il. CowlLshaw appeared for bankrupt. ' Bankrupt's assets totalled £306 3s (slock-in-trade £3l ss; bock debts, estimated to produce £l3-183; surplu3 irorn fecurity to secured creditors, £2s§). Liabilities: t*neccurcd creditors, i'SOl 15a Gd; secured, £S92; deficiency, £BS 12s 6d. The principal unsecured creditors wero: Miller and Ahearn, merchants, £7B 17s 3d; I'. Jamicson ond Sou, woollen merchants, ,f!6 103; Howard and Davics, £2l 13s 2d; Stewart, Beckett and Co., accountants, £22 13s; J. Vt'. Baird and Co., wcollen rner.chants,- £27 Is 3d; J. Hodgson, £63 12s .MY Ackioyd Bros., agents, £25 5s 2d. The'principal secured creditors were: New Zealand Government, £613 (estimated value, of security £950); 11. Hepburn, engineer, £250 (estimated value of security £2,00, Becend 'mortgage over tho samo property ano, chattel security). Tho bankrupt in lu3 sworn statement, said that in September, 1921, he entered into partnership with A.- Nixon, and they carried on till March, 1923, when they found that the partnership was unsatisfactory and that they wero getting into debt. Tho partnership was dissolved, bankrupt going into business on his own account. He took over tho existing debts of tho partnership and paid Nixon £23. Tho debts amounted to £lO6 14s Sd, but at a meeting of his creditors they agreed not to. press for payment, if ho could fliurantco 20s in the £.. On. April 20th, 1923', a month after he started on his own account, he niado a payment of £IOO in reduction of bis debts; between that date and September 23rd, 1925, he made further! payments amounting to an additional £l7O. -These payments drained his resources, and he was forced to obtain credit to carry on his business. While paying off ■ the debts incurred by the old business partnership, he found he was getting into debt on his own account. His cr;dit was stopped and during the past twelve months he had practically carried on -the business .on a cash' basis. As he had no working capital, this-meant .that he'.had '.to. get'a substantial deposit-on a. suit when it was ordered in order- that ho could purchase '.he necessary materials. This seriously cramped his. business.: He attributed his failure to the facts that he took over too big a' liability' iu releasing ■ Nixon, and-that, he was too-anx-ious .to repay the old creditors and start with-a-, clean sheet',...and consequently was paying away all hio profits by way of dividends instead of keeping a substantial part of -them for working capital. • The Official Assignee said that there was also £IOO due to the. Repatriation Department, which was not shown in bankrupt's statement. He did not see how he could get anything for the creditors out. of tho estate. It was decided that tho furniture, subject to tho chattel security, be returned to bankrupt. , The meeting was adjourned sine die'. . .—. .'• A MEETING LAPSES. A meeting'of the creditors of Geo. Hobbs, carter,:>l3 : Kolloston street, Linwood, whose bankruptcy; largely was due • to _ debts—hospital expenses and law costs, arising out of a motor accident in which he sustained a broken leg—was to have been hold yesterday afternoon, but lapsed as there was not a quorum, present.