A GROCER'S BANKRUPTCY.

New Zealand Herald, Volume LXI, Issue 18891, 13 December 1924, Page 13

A GROCER'S BANKRUPTCY.

SALE OF A BUSINESS.

MONEY THAT WAS NOT PAID.

. Tho events leading up to an Auckland grocer's bankruptcy were related afc a meeting of creditors of Joseph Clarkson (Mr. Devine), held yesterday. The official assignee, hit. W. S. Fisher, presided.

Bankrupt's schedule showed that the sum of £183 4s lid was owiiis to unsecured creditors, while the only asset was cash amounting to £33. In his statement, bankrupt said he came from England in 1919, and conducted grocery businesses afc Palmerston North and afc Western Springs Road before purchasing a business in Hobson Street. This business paid very well, and he sold it. The purchaser, however, went bankrupt, and Clarkson lost £225 over the deal. He then bought a, grocery business at Northcote, but his creditors pressed for payment. He sold the business, and tho proceeds went in payment of his debts. Under examination, bankrupt said he sold the Northcote business for £294. This was then paid away to creditors. Some were paid in full and some received nothing. He paid his two sons money he owed them.

The crucial assignee criticised hahkrupt's action in making these preferential payments.

A creditor alleged that bankrupt had deliberately set out to "do" his firm, and that he had said that the firm would not get a penny piece. Bankrupt denied this, and said he would . have paid in full if he had been given a chance. Mr. Fisher said' tho loss of the £225 through the sale of the Hobson Street shop would account for the balance of the money. The question of getting back tho money paid out to creditors would have to be seriously considered. As there was not a quorum present, the meeting adjourned without a resolution being passed.