Creditors of 'Week’ owed $58,000

Press, 24 February 1977, Page 21

Creditors of ' Week’ owed $58,000

PA Wellington The “Week,” last year’s short-lived national weekly newspaper, has been finally laid to rest. At a creditors meeting of Weekly Newspapers, Ltd, the company set up to publish the “Week” with an initial capital of $2OO, a liquidator was appointed to handle the company's winding up and the company’s financial position was made public. A gathering of about 20 creditors and proxies was told that the company had liabilities totalling $58,728. With assets standing at $2874 and nearly $l6OO owed to the Inland Revenue Department, the pickings will be lean for those who have made a financial contribution to the newspaper. The company’s liabilities consist of 818,800 owed to trade and general creditors —almost half of which is owed to a typesetting company — $lO,OOO to 1300 people with unfulfilled subscriptions to the paper. $7700 to unpaid contributors of articles, and $22,000 in unsecured loans.

Unsecured loans are made up of contributions from 25 creditors plus $6OOO owed in salaries to directors.

A Wellington publisher, Alister Taylor, who described himself as “not a small creditor,” criticised the directors of Weekly Newspapers, Ltd, for their “cavalier” approach to creditors. He said no pro-

fit and loss accounts, list of creditors, or balance sheets had been circulated.

The company directorsecretary, and erstwhile co-editor of the “Week”, Judith Aitken, said it was never the company’s intention to pull the wool over creditors’ eyes and these figures had not been circulated in order to save money. Copies could be obtained by any creditor who wanted them. A fellow director, Rosslyn Noonan, said no attempt had been made to inform subscribers of the winding up meeting because this would have cost $9O. Creditors were also told that about a month before the final issue of the “Week" went on sale any payments received in the form of subscriptions were placed in a special trust fund because at this stage the directors were aware that the paper was in financial difficulties and might not be able to continue on a long-term basis.

A motion to have these subscriptions repaid in full was lost on a narrow vote of creditors. Subject to legal clarification the Sl3OO in the special trust account will fall into the common account for general distribution. The “Week” went into recess on October 17 after 17 issues. Mrs Aitken told creditors that publication of a newspaper such as the “Week” wqs always a high-risk venture, particular in a country with a small population.

“With very limited resources, both financially and in terms of staff, the directors of Weekly Newspapers, Ltd, made from the beginning an attempt to modify the risks and produce economically a newspaper for which we still believe there is a market. “Our best endeavours were inadequate to carry the paper until it could establish a secure base in that market. “We are extremely conscious of the good will, the financial contributions, and the unsparing efforts to assist us which many people provided. "We regret most sincerely that as yet New Zealand has no independent political newspaper, and that the costs must now be borne by us all.” Mrs Aitken said the major problem throughout was the question of circulation. Although sales and subscription figures grew over the five months of production, they were not sufficient to counter the almost total lack of advertising revenue.

Strenuous attempts were made to secure outside long-term financial assistance when it was apparent the company was heading for the rocks. Discussions with Universal Press, the property developer, Mr Bob Jones, and National Business Review (Fourth Estate) all failed after these three decided not to proceed with a take-over.