CITY WAREHOUSE FIRM

New Zealand Herald, Volume LXIX, Issue 21332, 5 November 1932, Page 13

CITY WAREHOUSE FIRM

VOLUNTARY LIQUIDATION MACKY, LOGAN, CALDWELL LOSSES DURING PAST YEAR A decision favouring voluntary liquidation was made at a meeting yesterday of shareholders of Macky, Logan, Caldwell, Limited. Mr. H. J. Mills, secretary of flie company, was authorised to act as liquidator. Mr. T. H. Macky, chairman of directors, who presided, emphasised the reasons for reporting to shareholders in terms of a circular, a copy of which was published In the Herald on November 1. Mr.Macky said that the directors viewed with concern the continued losses which had been incurred, but they wore not uni mindful of the results of the liquidation, of such a large and old-established company. During the half-year ended July 31. there had been a net loss of £39,212, Mr.Macky said. With the loss carried forward, this made a total loss of capital at July 31 of £172.632. After making provision for the payment of £587,557 due to the bank, depositors and sundry creditors and for accumulated losses amounting to £172,632, there was an apparent surplus of £351,626 available toward the satisfaction of the amount due to shareholders in respect of share capital. This was based on the book value and taken a« a going concern. Trading Difficulties Mr. Ma.cky no attempt had been made to value the business from the shareholders' point of view, as there was no reliable basis on which to build. The stock and book debts were faithfully shown. All the other assets were moro or lees of a fixed nature and their vahie depended on the opportunity to sell them. Trade liabilities were no'v. heavy compared with the volume of irade the company commanded, the bulk consisting of bank advances and depositors' loans. Included in liabilities the amount' owing in London was taken at £50,000, against which goods were either at 'the London packers or i» transit. Referring to difficulties of trading, Mr. Macky said the company had to face a constant lowering of values in the class of goods it dealt in, resulting in serious competition and price-cutting in nearly all lines. The interest on the bank advances and the depositors' loans- had been a very heavy charge on the business. Subsidiaries Not Affected Mr. Macky said thqt, in August, 1931, the company found it necessary to call a meeting of depositors to obtain an extension of the due date to 1954. Certain of the depositors had not siigned the deed and some of them threatened action to enforce payment. The directors could see no way of meeting deposits falling due in 1934 and 1936 and -at.. the same time carrying on trading activities on the pres-. ent scale. There was no indication of an improved position in the next two or three years to warrant--jiucurring furtherpossible losses and no good purpose could be served by carrying on the present financial stricture of the company. The ijiotion to go into- voluntary liquidation was carried. The capital of the company is £524,600 in £1 fully-paid shares*. Sections of the firm's business, which' have been, formed into separate limited -liability companies, will not be affected by the liquidation of the wholesale warehouse company. These comprise the Cambridge Clothing Company, Limited, the Classic Manufacturing Company, Limited, the Plummer Hat Company, Limited, all of Auckland; the Manawatu Hosiery Company, Limited, Palmerston North; the South Canterbury Woollen Mills, Limited,. Timaru; and the Oamaru „ Woollen Factory 'Company, Limited, Oamaru.