Own fault, says bankrupt

Press, 9 December 1976, Page 7

Own fault, says bankrupt

A self-employed motor trimmer and upholsterer i with total liabilities of j $12,238.41, told the first j meeting of his creditors | yesterday that his business' 1 had failed because of a lack i of capital, the cost of mov- i ing his business twice, and his lack of self-discipline in 1 business. i

Warren Victor Healey, aged 29, trading as “The Trim Shoppe”,was adjudged bankrupt on November 11 on a petition of the liquidator of Melvin Industries.

Mr Healey lives with his wife and one dependent child in Rangiora. He has assets of $4346.88, including cash and proceeds from the sale of stock and plant, leaving a deficiency of nearly SBOOO. The money is owed to 58 unsecured creditors and one deferred creditor, and his wife, to whom he owes SIOOO borrowed to help to start the business.

Mr Healey told the meeting that he was a qualified canvas worker and sailmaker. Furniture upholstery and motor trimming had played a big part in his apprenticeship. He had had about nine years’ experience in his trade when he decided to become self-employed in March, 1975. He rented part of a woodworking factory in Southbrook, but had moved to other premises about seven months later. The first premises had been too small and was not suitable because of sawdust in the air.

Mr Healey said that he had moved to premises in Victoria Street, Rangiora, last December, and not long after had tried to diversify by selling handcraft materials through the shop. However, the shop was pot in the main commercial area and therefore was not well placed for a retail business. Also, he did not have the shop open at all times during normal trading hours. Mr Healey said that he drew only $45 a week from the business for living expenses, plus enough to pay for electricity, telephone and rent.

He had started a creditors' pool earlier this year through his accountant after he had realised that his financial position was not good. Until he heard of the bankruptcy proceedings, he thought that business had improved slightly. The Official Assignee (Mr I. A. Hansen) said that the case was almost a classic

one, with all the features that one might expect to find in a textbook on the subject. The bankrupt had insufficient capital, a lack of

management experience, and a poor business location. He had also tried to sell goods for which there was not a ready market. He said that it was to Mr Healey’s credit that he had not tried to blame anyone else for the failure of the business.