GROCER’S BANKRUPTCY

Sun (Auckland), Volume 1, Issue 112, 2 August 1927, Page 13

GROCER’S BANKRUPTCY

MILK-ROUND VENTURE CREDITORS OPPOSE DISCHARGE “I certainly think you should oppose bankrupt’s discharge,” said the Official Assigne, Mr. G. N. Morris, concluding a severe cross-examination of J. F. Clendon, a bankrupt grocer, of Auckland, who met his creditors this morning. Accordingly a resolution was passed by Clendon’s creditors instructing the assignee to oppose his discharge until he had made some effort to pay something off his debts. Bankrupt’s schedule showed debts totalling £478 owing to unsecured creditors, while his assets consisted of book debts £56, and furniture £4O. There was a deficiency of £3Bl.

In a statement read to the meeting bankrupt said he set up in business as a grocer at Mount Albert terminus, and his first year’s trading showed a profit of over £IOO after drawing £4 10s a week in wages. Last year liis wife took ill, and was unable to assist him in the shop. Her illness cost him £l5O. He then had to engage an assistant at £3 a week. When buses began to run past his door his former customers began to purchase their groceries in town. Then four other grocers commenced business in his locality, and he began to lose ground financially. Later ho moved into a larger shop, still being unable to make it pay, divided it into a grocery and a dairy with a milk run, but the Labour Department forbade the joint conduct of the two businesses.

He then closed both shops, retaining only the milk round, which paid well until he took ill in January and liis brother carried on the round without wages. When bankrupt recovered he found only half his customers remained. He was re-establishing himself when a large creditor forced his bankruptcy. BANKRUPT CENSURED

Examined by Mr. Morris, bankrupt said all his books were accidentally burned last February. When he started in business he had about £SO cash and his stock was all obtained on credit. A year later he was £147 to the good.

In January, 1926, his business began to decline until he realised he could not make it pay. He therefore sold out his stock and paid £2O down for the purchase of the milk round for which he was to pay £2OO. Bankrupt was severely criticised by the assignee for selling out his grocery store without taking his creditors into his confidence.

Creditors wished to prosecute Clendon, but Mr. Morris pointed out there was not a sufficiently strong case against Clendon to warrant a prosecution. Bankrupt was now working on wages at £5 a week for Melvern’s. He had to support a sick wife and a baby out of this and could see no chance of making an offer to his creditors. ______