TOO LITTLE CAPITAL

Evening Post, Volume CXI, Issue 41, 18 February 1931, Page 14

TOO LITTLE CAPITAL

GROCERS' BANKRUPTCY

A meeting of creditors in the bankrupt estate of Alexander' Craig Ritchie ond Francis Harry Cain, trading as Ritchie and Cain, Childers terrace, Ivilbirnie, was held at the office of. the Official Assignee (Mr. S. Tanslcy) yesterday. The creditors present were: —Pacific Manufacturing Co. (Mr. M'Mahou), J. Nathan and Co. (Mr. Pacert), H. Baldwin and C 6. (H. Flux), Picot Bros. (Mr. Fraser), Collins Bros, and Co. (Mr. White), Moore, Wilson, and Co. (Mr. Moore), V. Jf. }{. .Meadows and Co. (Mr. Meadows), Osborn Manufacturing Co. (Mr. Mackay), G. Thomas and Co. (Mr. Jacobs), Mr. Armstrong (Mr. Pope), Thompson Bros. (Mr. Clcre and Mr. Press). The statement of accounts showed:— Amount owing to unsecured creditors, £807 Us 9d; other liabilities, £24'0s 10dtotal, debts, £921 12s 7d; stock-in-trade, £600; book debts estimated to produce £185; total assets, £789 15s -Id; deficiency, £131 17s 3d. Tho creditors included Thompson Bros., £279 13s lid: Moore. Wilson, and Co.. £192.1s lOd; J. .Nathan and Co., £79 Is Sd; Burns, Philp. and Co., £74 3s: Meadows and Co., £08 2s od.' The bankrupts, in their sworn statement, attributed their failure mainly to starting business with insufficient capital. The. Official Assignee said that since the bankruptcy he had kept tho business open in case it might be sold as a going concern. The stock had been valued at £4SO. In reply in questions, Mr. Cain said that only a small amount of wish was originally put1 into the business. The stock put into the business was valued at £1.40. Mr. S. W. Moore (Moore, Wilson, and Co.) outlined the course of the bankrupts', business.' Investigations showed,^ lie said, that instead of £700 worth of stock there was only £490 worth; instead of £2SO worth of stock having been removed from the business at iSeatouu Heights to Kilbirnie. the value of the stock transferred was £140. The business had boon started ■ with little or no experience, and with practically no capitnl. Jn reply to questions, Mr. Cain said, the, average takings were £125 a week. • The two partners drew cash out at the rate of ,£3 13s a week. All the cash takings were paid ■ into the bank. Some small accounts were paid in cash. After some discussion, it was agreed to adjourn the meeting for two weeks, and that in the meantime the position of the business be fully investigated; that a pro-; per statement bo put before the creditor's; and that the stock be realised by public auction. . . i The OfHcial Assignee said he would call another meeting when" the report of the accountant- was received. ' •