MEETING OF CREDITORS.

Otago Daily Times, Issue 21264, 19 February 1931, Page 17

MEETING OF CREDITORS.

HAIRDRESSER’S BANKRUPTCY. A meeting of the creditors of William Fibbes, of Dunedin, was held yesterday afternoon when the official assignee (Mr J. M. Adam) presided. Bankrupt had conducted the business of a hairdresser and tobacconist, which failed, and is now employed as a salesman. The amount owing to unsecured creditors was £53 18s 6d and there were no secured creditors. The assets (book debts) were estimated to produce £l, leaving a total deficiency of £52 18s 6d. The creditors were:—W. H. Simms and Sons, Ltd. (Christchurch), £lO 2a 6d; N. Johnson, £9 6s; D. H. Brown and Son, Ltd., £ls 7s 6d; Sargood. Son and Ewen, Ltd., £8 2s; Frederick Newburn (Balclutha), £lO 4s; W. D. and H. O. Wills, 16s 6d. Mr C. J. Rawlinson appeared for the bankrupt and Messrs L. R. Simpson, R., H. Simpson, and O. J. Cooke for the creditors. Bankrupt, in bis written statement, said that he commenced business on his own account in 1925, purchasing the business of a hairdresser and tobacconist in Prince Albert road, St. Kilda, Dunedin, for the sum of £l2O. Of this amount £BO was paid in cash from his own money, and the balance won supplied by Messrs W. D. and H. O. Wills, who were paid off in a few months. For about two years the business was fairly successful, and he was able to clear expenses and take wages amounting to about £4 per week. Nearing the end of 1927, the business began to fall off, and as a result of price-cut-ting by bigger shops, it became hard to clear expenses. Messrs Bing, Harris and Co., Ltd., agreed to carry him on, on his giving an instrument to secure their current account. At he gave this security Messrs Bing, Harris and Co. were the only creditors. Business grew gradually worse and Messrs Bing, Harris and Co.’s account increased to over £l7O. In July, 1929, they sold the business under their security. Not sufficient was realised quite to pay their account. At the time of the sale of the business bankrupt owed over £IOO to sundry creditors. For over two months after this he was unemployed, and afterwards he obtained a hairdresser’s position at £5 5s per week, which lasted from October, 1929, to the end of February, 1930. During the period of employment he paid instalments off his debts until the total debts were reduced to about £7O. Except for about_ 12 weekends worked in various hairdressers’ shops, bankrupt was out of work from February until December, 1930, when he obtained a position as a calendar salesman on a commission basis. He allowed two judgment summons orders to be made by default, thinking that he would be able to make arrangements to pay them by instalments. On the issue of a warrant in respect of one of the orders he consulted his solicitors, who, on his behalf, made an offer to_ his creditors of £2 week, to be divided pro rata among them. The creditors who had obtained the orders would not, however, allow any further time, and he was forced to file. Bankrupt’s only assets were hook debts amounting to approximately £4 in connection with the hairdresser’s business. These were in the hands of the South Island Traders Agency for collection, and were estimated to produce about £l. He was a single man, and paid 30s per week board. He was not now working on a commission basis, but on a fixed wage of £3 10s per week,, ■ Questioned by the official assignee, bankrupt said that he was earning £3 10s a week, and was willing to offer £1 a week until 10s in the £1 was paid. He denied any knowledge of Simms and Sons account for petrol, saying that he had never owned a motor car in his life. He had, however, allowed a judgment,to be made, and could not dispute the account. He had handed a friend £5 to pay into the office of Mr L. R. Simpson, but the money had not been handed in. One creditor intimated that he was unwilling to accept a 10s dividend, contending bankrupt should pay 20s in the £ ' The meeting was adjourned sine die to see how bankrupt fulfilled bis undertaking.