BANKRUPTCY.

Poverty Bay Herald, Volume L, Issue 16607, 10 December 1924, Page 5

BANKRUPTCY.

A meeting of creditors in the bankrupt estate ui |toward East and Eleanor Jessie East, .storekeepers, ol Gi-s-unne, was eonvened for this morning. Mr \v, |<'imt,lay, Air K. r> win tier ton (representing Messrs Alarray, Pollens aim to.), Air A. A. Gardiner (representiii|r Messrs Common, Shelton and Co.) were the creditors present. Examined by tlie deputy official assignee, Mr (J. Blackburn, bankrupts said the total indebtedness would ne about £7CO to £725- They iiad boriiowed £2JO when they erected the shop, tlie latter cos,ting £3OO to build, including fittings, etc. The remainder was still duft. to Cave Bros, and Common, Site]ton and Co. For some tune itts a week was paid to Cave Bros., the original account tor whom was set down at £6O. £SO was borrowed privately to stock the shop, and this had been paid back within three months. During the 12 months bankrupt Howard East was unemployed for about three months, and had to depend entirely on tlie shop. The .amount paid into the bank was fairly satisfactory, about £36 being paid weekly, while about £4 10s profit per week was fnude.

Mr Swinnerton considered that some of tlie stock was sold' below cost.

Eleanor Jessie East agreed that this was tlie case, but said site had not realised that this was hurting the business. The tea-rooms were tlie portion of tlie business where the greatest loss took place. They began to get behind with Murray, Roberts and 1 Co. about, a year ago. The opposition shop had not made anv difference to them.

Mr Swinnerton said he was satisfied that the failure was due principally to selling at a loss. They had also a large family to support. Air Findlay : Your wages were going into the shop, were they not. Air East?— Yes.

Howard East, replying to the Assignee said he had been in employment for about three months past. They had very little in the savings hank and a few shares in tlie Hydro-Electric Co., fully paid up. The Assignee considered l that about half of tlie hook debts could be secured. The capital value of the property was about £l3lO, and the mortgages £7CO, and he thought if the premises could he sold it should be done. If everything happened as he had estimated, about 10s in the £ would be paid, Mr Swinnerton moved that the furniture be retained by the bankrupt. Carried.

The acceptance of any satisfactory offer for the business was left- in tlie hands of the Assignee.