High costs blamed for failure

Press, Volume CXV, Issue 33791, 13 March 1975, Page 22

High costs blamed for failure

Inaccurate costing, high overhead costs and an inability to recuperate expenses were the main reasons given for Marine Accessories (Christchurch), Ltd, going into liquidation and receivership.

The receiver of the company (Mr D. Riley) told a meeting of creditors yesterday that he had looker at the possibility of continuing the company, but that it had soon become apparent that the situation was “far too bad.”

The company had a total indebtedness of $45,880.87. Assets totalled $18,819.34, leaving an estimated deficiency less costs of $27,061.53. There were 67 unsecured creditors, who were owed ■527,640.87 and one secured I creditor who was owed i $315.22.

The company also had one preferential creditor who was owed $240 and one debenture holder who was owed $lB,OOO. The deputy official assignee (Mr L. Anderson) said that the company had enough assets to pay the debenture, but the balance available to other creditors would be $579.34.

The company was wound up on February 14 in the Supreme Court Christchurch, on a petition from A. R. Guthrey Travel and Shipping Ltd.

Mr Riley was appointed receiver in October, 1974. The company was incorporated on June 8, 1972. The name of the company was Donald Naire, Ltd, and first operated as a farm contracting company. The name was changed to Marine Accessories in 1973. The com-

pany produced parts for boats, was investigating a new type of water ski, and making moulds. The principal in the company, Mr Donald John Nairn, said that he employed two workers. Mr Nairn said that a considerable amount of money was put into development and research and for this purpose he visited the United States a month before the company was put into receivership. Mr Nairn said that on his return the economic situation was worsening, and they could not get the orders that they had anticipated. The meeting decided to I appoint the official assignee the official liquidator of the company and a committee of inspection of three of the major creditors was set up. The meeting was closed.