BIG MARLBOROUGH FIRM FAILS.

Hawke's Bay Tribune, Volume XVI, Issue 113, 30 April 1926, Page 7

BIG MARLBOROUGH FIRM FAILS.

RESULT OF SLUMP YEARS. Marlborough, April 28. The Marlborough Farmers’ - Cooperative Motors, Ltd., a big Blenheim concern with branches at Havelock. Nelson and Seddon, has gone into voluntary liquidation, this step having been necessitated by losses incurred during the slump of 1919-21. It is anticipated that the company’s assets will realise more than sufficient to pay all the creditors twenty shillings in the £, and the only losers will be shareholders in the concern, whose claims will come after all other liabilities have been met in full.

The Chairman of Directors. Mr W. J. Girling, M.P., presided, and an interim balance-sheet was placed before the meeting, showing that the nominal capital was £50,000 in 50,000 .81 shares, and subsscribed capital £13.006, of which £4227 10s remains to be called up. The book assets wore shown as £32,000, including uncalled capital, and liabilities arc estimated rather under £32,000.

The chairman said the principal reason for the directors’ recommendn

tion, that the company be wound up, was that its liabilities, incurred during the years of slump, were eating up all profits in interest charges, and there wus.no reasonable possibility of recouping these losses, although last year’s turnover was no less than £50,000.