Inexperience Blamed For Bankruptcy

Press, Volume CIII, Issue 30401, 28 March 1964, Page 19

Inexperience Blamed For Bankruptcy

His bankruptcy was primarily due to his having undertaken a business with insufficient capital and lack of experience, said a statement by Arthur Allan Mcßae which he read to a meeting of his creditors on Thursday.

Mcßae was adjudged bankrupt on March 18.

The Official Assignee (Mr P. D. Clancy) said that McRae’s statement of affairs showed the amount owing to unsecured creditors as £879 3s 6d and his assets as furniture valued at £3OO. In his statement of the causes of his bankruptcy, McRae said the turnover in the business was too small to maintain his family and he had been forced to sell it at considerable loss.

Mcßae, replying to Mr Clancy, said he was 52. He was in business in a dairy in Colombo street from January 1963, to September, 1963. He was previously in the Police Department. He and his wife were in partnership in the business but his wife had no assets. He paid £5OO for the plant and fittings and £3OO for the goodwill. The business was not successful because of inexperience, he presumed. The weekly turnover was about £lOO when he started business. The rent was £5 a week. He got £2OO for the goodwill and about £250 for the plant and so on when he sold the business. At present he was employed at a flourmill at approximately £l3 a week plus overtime.

Mr Clancy: What did you do with all the money you got out of the business? Mcßae said it went in buying stock and on living expenses. He had a family of six, the oldest being 15. He drew between £lO and £l5 a week from the business. “We’re in a bit of a fix for we have no books to examine Mr Mcßae on,” said Mr Clancy.

When he was questioned by a creditor, Mcßae said he was now renting a house at £5 10s a week and the rent was about £125 in arrears. He used to spend a iot of money on liquor but now he had cut it right out He should be

able to work up to about £2O a week with overtime. He had not yet had a settlement statement from the sale of the business. He had £9OO when he left the Police Department and he put it into the business.

Mr Clancy closed the meeting.