LICENSEE OF HOTEL BANKRUPT

Press, Volume LXX, Issue 21236, 7 August 1934, Page 16

LICENSEE OF HOTEL BANKRUPT

A SMALL ni'/FK JF.NCY A deficiency of £237- his total liabilities, there being no assets—was oi.-elosed in the statement of Frank Leslie Coutts. formerly licensee of the Phoenix Hotel. Papanui. who met his creditors yesterday morning. Mr J. H. Robertson. Official Assignee, presided. Mr C. S. Penlington appeared for bankrupt. In his statement bankrupt set out that before taking over the lease of the Phoenix Hotel he was employed equally in various positions in Ashburton." On March 14, 1932. he took over the lease of the botel, paying 1200 in cash and £IOO from bank overdraft, and signing promissory note.-, to the owner of the hotel • Thomas Aspelb for the remainder of I he purchase money for furniture. The purchase price totalled £574 lis 6d. stock at valuation being £ll7 7s, and furniture £457 4s 6d. The promissory notes were for £lO a month, while repayment to the bank was at the rate of £.3 a month. The owner of the hotel took a chattel security xor the remainder of the purchase money. The rental of the hotel was £l4 a week for the first year and was reduced to £l2 a week in the second year. In the first year of trading he made a loss of £179 9s sd, even ■ hough his drawings for himself and ins wife were only £35. During this year the dispute occurred at the freezing works, and bankrupt's trade dropped at least 33 1-3 per cent. Takings gradually fell away in spite of -.11 his efforts to economise. At the end of the second year bankrupt found it quite impossible to carry on at the rental he was paying, but his request for a reduction was refused. He then made arrangements for a new tenant to take over the hotel.

Bankrupt attributed his failure to insufficient capital at the time of starting business, resulting' in constant I creed economies in the bar. the freezing works dispute causing loss of Uadc-, and the high rental' compared with the returns.

Bankrupt, who was questioned by Mr R. L. Ronaldson. representing a creditor, on payments he had made Jii the last two weeks of his tenure of Ihe hotel, denied that he had decided 'o pay off all his debts with the exception of that owing to Mr RonaldmjiVs client.

Bankrupt agreed to pay 10s a week of! his debts.