FORCED INTO BANKRUPTCY

Evening Star, Issue 22817, 27 November 1937, Page 25

FORCED INTO BANKRUPTCY

A SALESMAN'S PROBLEMS MEETING OF CREDITORS A meeting of creditors in the bankrupt estate of Sandford Bagley Sinclair, salesman, of Dunedin, was held yesterday afternoon. The Official Assignee (Mr J. M. Adam) presided. Mr C. M. Barnett represented the bankrupt. The total amount owing to unsecured creditors was £275 5s 3d, the principal creditors being: Goldberg Advertising Ltd., £46 14s 4d ; Barth Electrical Supplies Ltd., £54 10s 8d; H. L. Steedman (tailor), £l7 Os 6d; * New Zealand Tablet ’ Company, £l2 5s 9d; A. J. Rice, £lO 4s lOd; Butterfields Ltd., £lO 7s; and Shell Company Ltd,, £lO 11s. There were no secured creditors and the bankrupt had no assets. Sinclair made a statement in which he said he was unemployed. He commenced business in a small way about 1930 as a manufacturing cosmetican. The venture was successful, and in 1932 he established a limited company with a small capital, and it did very well for 18 months. Then selling conditions became difficult, and in order to increase sales an advertising campaign was found necessary. The results, as it turned out, were not in keeping with the expenditure, and the company was forced into liquidation. Since he had been unemployed and. on obtaining occasional jobs selling articles on commission. At one period he obtained steady work at £3 a week, but this lasted only three months. With the idea of recovering his financial position he sponsored some theatrical ventures which, from the lack of talent available and the “ huge expense ” involved in running these, proved a loss in every respect. The bulk of the debt owing by him was for advertising, hall rents, and travelling and other _ expenses incurred by him in connection with theatrical tours in Otago. He had' from time to time been forced- to defend judgment summonses when no order had been made against him. Similar proceedings had recently been issued and served on him, and as he had no immediate offer to make ho considered it advisable to file his own bankruptcy petition. He would like to bo able to make an offer to his creditors, but at the moment he had no prospects of doing so. In reply to a creditor’s question, bankrupt stated that when he commenced the theatrical venture he did not have any capital. He and about 17 others had gone into the venture, but he was responsible for any losses incurred. He was willing to work, but suffered from a weak back. He could do light work, but there was not much employment offering to a manufacturing cosmetician. He had no prospects of settling his accounts at present, but as soon as he received work he would make an offer to his creditors. As there was not a quorum of creditors no resolution was passed.