BANKRUPTCY OF D. P. CLARIDGE

Press, Volume LXX, Issue 21341, 7 December 1934, Page 19

BANKRUPTCY OF D. P. CLARIDGE

MANAGEMENT OF NIGHT CLUB CREDITORS NOT SATISFIED Considerable dissatisfaction with the conduct of the business of Douglas Palmer Claridge, night-club proprietor, of 207 New Brighton road, Burwood, a bankrupt, was expressed by certain creditors at a meeting held yesterday. The Official Assignee (Mr •!• H. Robertson), who presided over 'the meeting, examined bankrupt '■clpsely as to the details of the management of his club since its opening »tt April 1, 1933, and as to the method in which accounts had been kept. Mr Sargent appeared for bankrupt. "You have seen enough to show a certain amount of looseness in the conduct of the business," said the Offi•cial Assignee to the assembled creditMs after the examination. "It seems to me from the books that there is a Possibility of a leakage, and that it is doubtful if all the receipts have been Properly accounted for. I think all that can be done is to leave it in my hands to make such further investigations as may be necessary." It was decided to adopt Mr Robertsons suggestion, and it was left at his 5 15c _retion, in association with Mr R. A. Whitbrock, to dispose of the assets M the estate to the best advantage. Position of the Estate The sum of £3.18 hU Dd was shown «s owing to unsecured creditors and ,?poured creditors £74 4s 2d. Other •abilities were set clown at £lB4, bcJ n San amount bv wav of security over Wniture to secure Mrs Violet' C'nrfcvf; mot h r T of bankrupt. n?ainsf Ha°"'tles under n bank guarantee. Total oeots were p .r,rv> 11« <vi we-c »fiow n as:—Book deht- n ? 10s "ated to nre-hinr. rpn- furniture, at K'tMice subvert to ?/T,-q Violent Clar™»s cl.-urn. PT,!); a surplus from -~0. ir, of curor i creditt £ '« 11? °'' T otal *"?"** J,,,,"? "d. leaving n deficiency of hv Tiankrunt , bankrupt said in a statement that thr, s t hDrl thf - idea ( >' a club ";™Ugh the suggestion of a friend to P» I H 3O c£ R is 'Claridgo's) name. si° "ad about £IOO in cash when he w d^ the Icasr ' < ind rnnde arrangehari for furnishing. He rvas to have On ? P artner . v/'no was unable to go m*™ the project, but bankrupt was Wre ady committed to it. en 4 s . ta tcment continued: "I opened ji April 1, and it took some time, as expected, for the club to get going &> T '''" w.-,s finally !?" ei! on Augu- 31. 1933. Rules S ad °P , ed. ■ The members were ZL 6r no financial obligation, whaianri\ for membership, fees, j na to pnv tii,. r i ■■,,;<,,, for r-rvicrs lti« a i S 2 le!y ri '-pon''!blr, for a n HabilProats T al ° ne ' A ' ns ontiMorl to an - v , Twice Prosecuted Cluh? as imt '" ,a, -'ing mv wav and the y£° w T as becoming firml" established «rffi»L «. was Tosecuted for offences snSiL thr J >u " h after on Saturdays. *V w ,as in June, 138."*enc« P a rl ade s r - ot ""' ;?t " to <'«e ofW£ eSec V out artcr iuclffment had «n*J r £L e . rwd > T *•'»-* convicted and SenL -J nvr ' ; ved ,-g.e in legal ex•ff frnn ~ ''-■''•- but m,,ph came i,J 1, ' "' rhaf members be--5"1 thcir P atrona «° it jl S f, advice was tr.krn and adopted «*-SJ!} e v Conduct ljf the club, and ,™Ws~ begaa gradually to-return^

when I was prosecuted again for Sunday trading. The case was defended, but I was again convicted. I was advised to appeal, and gave notice of appeal. In the meantime the patronage of members fell right away, and I was unable to find the cash necessary for security for appeal. Compelled to File "I decided that I could not carry on any further, and by advertisement, in the newspapers, I notified members that Saturday, November 24, would be the final evening. Creditors immediately pressed. The landlord having ■ put in the bailiffs, I was compelled to file. In my statement of assets, I have placed the furniture at cost price, but I am afraid that if it is sold by public auction without reserve the furniture will be sacrificed. Jn fa : rness to myself I ought to say that I have drawn very little for personal expenses, and have lost the capital I put in. "I have in mind, at the suggestion of one of the members of the club, that it may be possible to have the place taken over as a going concern, j when a better price could be obtained. Nothing, however, could bo done about this till after the meeting of creditors." Value of the Estate The Official Assignee said that it was difficult to say just what the estate would produce. The goods held under hire-purchase agreement might not provide anything like the equity expected, and the point of ownership had to be settled. "I think I am on firm ground in saying that Mrs Claridgo's claim in respect of the furniture is not a good one," he added, "in which case it will be available for the creditors." In reply to questions by the Official Assignee, bankrupt raid that he had no interest, or expectation under any will. He was 28 years of age and a single man. Examination of Bankrupt Questioned as to the staff he had employed at the night-club. Claridge said there were 13 on the staff on Saturday nights and holidays, including a band of four. There were three in the kitchen, three stewards, a cook, ono behind the "soft drink counter" —bankrupt said first "behind the bar," but corrected himself—and an odd man. Fourteen pounds a week was paid in wages, except in race-week, when the full staff was employed every night. The Assignee asked what were the charges for entry to the club. Bankrupt replied that on week nights the charge was 5s a couple, on Saturdays and holidays. 7s 6d for members and 10s for guests, in each case an additional 2s being charged for supper. The Official Assignee: Could anyone walk into the club for supper? Bankrupt: Certainly not. The members were entitled to come at any time and also to bring three guests, signing the visitors' book for the guests they brought along. Keeping of Accounts Bankrupt had produced balancesheets, and the Official Assignee enquired as to the way in which the accounts had been kept. Bankrupt answered that the sheets had been prepared by Mr F. G. Dunn, a public accountant. "He stopped keeping the books from July this year because I owed him money and I had not paid him," said Claridge. After Mr Dunn had stopped keeping the books, bankruot had continued to supply him with balance-sheets until Mr Dunn had gone to Svdney in September. For the last seve'n weeks the. sheets had not been supplied. . „„, The Official Assignee: When you started, what capital did you have? Bankrupt: I had £IOO. I considered this sufficient because I had hire-pur-chase agreements. The other £IOO f had expected did not come forward and I had to carry on with £IOO. The Official Assignee: Simply because you were able to go along to the hire-purchase people. Your own capital was insufficient to start you? Yes, without hire-purchase. '

Accounts "Hardly Correct" The Official Assignee referred to a statement of the accounts for the first month during which bankrupt was in business, dated April 30, 1933. The statement showed the amount spent on food during the month at £64 12s 3d. Hp asked bankrupt to explain a deficiency of £29 indicated by the amount stated as receipts from supjoe'"' £35 5s 4d. ; Bankrupt said that the deficiency whs represented bv living expenses for himself and the staff. The Official Assignee: You explain the deflciencv as living expenses, leaving out of account altogether the profits made from simpers. Bankrtmt: As a matter of fact there was no nrofif, on the r.'mpers at all. They cost me lld lld to produce and thev wore sold at Is. The Official Assignee: This discloses that your accounts here are hardly correct. Either you were selling cordials at a loss or else all the sales are not shown here. The cash receipts for the whole year ended March 31. 1934. were stated in the accounts to be £2134. There was a net loss on trading of £4 15s 2d. "Since that date Mr Dunn has prepared no other accounts," said the Official Assignee, "owing. I take it, fo the fact that you could not pay him." Wages Accounts Bankrupt said that for himself he had been drawing from petty cash to the extent of perhaps 30s to £2 10s a week, mninlv for running expenses. Apart from this he had drawn no Wages. i The Official Assignee commented that the wages accounts showed one or two discrepancies. He asked why bankrupt had not kent bettor statements when he knew he was getting into difficulties. "When you onme into bankruptcv." he added, pointing to the balance-sheets, "your creditors want something more definite than Ihi" sort- of thing." The Official Assignee said that for National Week the total takings were shown to be £l5O. The next raring week would be in Novemher. and though in National Week £l5O had been received, according to the books repots in Carnival Week were only £ls or £fiO. Bankrupt, said that a lot of had been taken out. He thought that the second figure might represent net profits. The Official Assignee did not accept this as an explanation, stating that the accountant could be relied upon to make the accounts consistent. "I have not made a close investigation of the books." said the OffMal Assignee, "but there are a lot_ of discrepancies, which makes me inclined to think that there has been some leakage." To bankrupt: "Are you prepared to swear that all the money received has been properly accounted for?" Bankruot: Yes. The Official Assignee: We will pass from that, but I must comment that there are very marked discrepancies. Your explanations have not been entirely satisfactory. Bankrupt was briefly examined by Mr Sargent, to whom he said that he had supplied Mr Dunn from time to time with all the information in his power to give, and that Mr Dunn had ceased to keen the books for no other reason than that he was not paid. The cash received after he had realised that he was in difficulties, bankrupt said, was lust sufficient to carry him on from night to night.