DRAPER'S BANKRUPTCY.

New Zealand Herald, Volume LXII, Issue 19197, 10 December 1925, Page 15

DRAPER'S BANKRUPTCY.

FAILURE AT TAKAPUNA. PRESSURE BY CREDITOR. DECISION TO SELL BUSINESS. The affairs of William St. Clair Crookbain, a draper, of Takapuna, were investigated yesterday at a large meeting of creditors. The official assignee, Mr. W. S. Fisher, presided. The schedule showed the total liabilities to bo £1067, all owing to unsecured creditors. The assets, which amount-ed to £999, included stock in trade estimated by bankrupt to produco £950, and fittings and plant £4O, leaving a nominal deficiency of £6B. In a statement bankrupt said he went into business in a shop in the Strand, Takapuna, in September, 1923, taking over the business for a period of five years. The stock at that time was worth approximately £I7OO. Trade was good that year, but in 1924 it fell away slightly. However, lie did his best to encourage trade. Subsequently he was pressed for repayment of £2OO, which he had borrowed. He was unable to pay the amount, and suggested he should pay it off in monthly instalments. This he did until the creditor commenced to press him for the remaining £l4O. Bankrupt had several interviews with this creditor and his solicitor, but they would not wait, and he was forced into bankruptcy. He said if they had waited only another month he would have been in a position to pay.

Question of Insurance Policies. " If I am allowed to continue for the next three months I am sure I will be able to place before the assignee at least £500," conducted bankrupt. He said he had been drawing £5 a week from the business, and out of this paid two assistants £1 a week each. With the remaining £3 he kept himself and his mother. In answer to the assignee bankrupt said he was 28 years of age, and had been in the drapery business all his life. He first started on his own account in Fonsonby Road in 1921. Before he went to Takapuna he went into his position and found his assets to be approximately £IOOO and his liabilities about £BOO. In February, 1924, he took out two insurance policies valued at £I6OO The Assignee: Did you think your stock at that time warranted such large insurances ?—Yes, I thought so. During the past year bankrupt said he had been selling off his stock and buying very little, because he did not think the business warranted it. He had taken out no balance-sheet since July, 1924. The Assignee: All that time you were feeling the financial strain? —Yes. Did you not think it behoved you to consider your position ?—Yes. I was plodding along trying to meet my accounts. Statement to Creditor. Bankrupt said he was quite prepared to carry on the business on behalf of the creditors. In answer to a creditor he said he had no property in Lake Road or anywhere else. "I wish I had," he added, emphatically. "On November 6 he told me that his assets weio £IOOO and his liabilities £548," said a creditor. The Assignee: What explanation can you give of that ?—I have no explanation. I thought that was my position. Did you not realise the seriousness of your position as late as November ? A Creditor: He obtained credit since then. Bankrupt: They were old orders. Ihere were none made since November 6. In answer to questions from creditors bankrupt said he had only visited a racecourse four times since he returned from the war, and had been to a place of amusement only once. His turnover last year was £IBOO. "I think creditors will doubt your statement that if allowed to carry on you will pull things together," said the assignee. "I do not favour the carrying on of the business." It was finally decided that arrangements should be made to dispose of the business as a going concern, and three of the creditors were appointed to act with the assignee in this connection.