IN BANKRUPTCY

Manawatu Standard, Volume L, Issue 86, 8 March 1930, Page 6

IN BANKRUPTCY

HOTELKEEPERS’ FAILURE. Decreases in the takings were cited, as the cause of their bankruptcy by Arnold Fred Lorigan and Bernadetta Lovigan, hotelkeepers, of Cheltenham, when they were examined in bankruptcy (by the D.O.A. (Mr C. E. Dempsy) yesterday afternoon. Unsecured debts were shown to total £235 Os Bd. There was an estimated surplus of £l7B 8s over the amount of £2048 12s, owing to secured creditors, and assets were valued at £241 5s 3d, leaving a nominal surplus. Bankrupts were represented by Mr H. H. Hutchison. Creditors present were Mr J. Tremaine on behalf of the Midland Brewery, Mr T. Fraser (Johnston and Co.) and Mr F. Bailey, formerly porter at the hotel. In a written statement, bankrupt said that in December, 1928, they took over the Cheltenham Hotel at a purchase price of £1625. They paid £425 cash and the expenses were £7O. At that time they had no liabilities. For the first six months they kept up all their payments, as business was good. From May, 1929, the takings dropped, but they had anticipated that they would pick up in the summer. Owing to a bad season and falling prices they did not do so. On going into their position at the end of 1929 they found they were carrying on at at loss of £4 or £5 a week and decided to sell. They sold the goodwill for £6OO, with stock and furniture, at valuation, expecting to realise sufficient to pay their creditors in full. The stock and furniture, however, only realised £493 15s, and as his creditors were pushing them, they were compelled to file. Examined concerning the takings, Arnold Lorigan stated that at the end of 1929 they had declined from £SO to £44 per week. He could not understand the reason for the decrease. He had no experience of hotelkeeping before he went to Cheltenham. The stock was valued at about £l5O in December, 1929, and he could not say what had since been purchased. The meeting was adjourned sine die.