Regulations hit dairy’s purse

Press, 13 April 1978, Page 19

Regulations hit dairy’s purse

Under-capitalisation and the cost of improving a suburban dairy to meet health requirements were given as the cause of his bankruptcy by Leonard Hector Thomas, aged 37, unemployed, at a meeting of his creditors in Christchurch. Mr Thomas traded as L. and R. Dairy, at 694 Ferry Road, from October, 1976 to February, 1978. He was adjudged bankrupt on his own petiton to the Supreme Court on March 21. His summary of financial circumstances showed liabilities of $2914 to 15 unsecured creditors and assets estimated to produce $1403, leaving a deficiency of $l5ll. Mr Thomas told his creditors that he had had no previous experience in business when he took over the dairy. He had opened it

from 6.30 a.m. to 8.30 p.m. seven days a week and had employed one shop assistant who worked a 40-hour week. In March, 1977, a health inspector had called and told him that the premises had to conform to certain requirements, including floor and wall coverings, removal of the freezer and cooker, and installation of a double sink unit. It would have cost $2OOO, said Mr Thomas. His lawyer was investigating the possibility of taking action against the previous, owner, he said. Mr Thomas said he had also been affected when the price freeze was lifted in 1977 because he did not have enough working capital to pay the increased prices for grocery items. The chairman of the meeting, acting for the Official Assignee, was Mr B. N. Nalder.