LOSSES A MYSTERY

Te Aroha News, Volume XLI, Issue 6602, 21 May 1925, Page 5

LOSSES A MYSTERY

TE AROHA BUSINESS FAILURE BANKRUPT DENIES LEAKAGE CREDITORS dissatisfied; No explanation of why he had got into debt to the extent of £SOO, and also lost £2OO of his own money, diming 14 months in business as a hairdresser, tobacconist, and keeper of a billiard saloon at Te Aroha, could be offered by Vivian H. G. Wirk at a meeting of creditors in his bankrupt estate on Tuesday. Mr W. S. Fisher, official assignee, presided. Bankrupt’s schedule showed that his debts to unsecured creditors were £599. ; • The only asset was stock, which had a nominal value of £165. Against this was a claim of £l3B for about six months’ arrears of rent, which was a preferential claim upon the assets.

A Creditor: The bankrupt bought the business for £1343, paid £4OO deposit, and another £ll2 10/- from earnings. It looked as though there was absolutely nothing for the creditors.

Questioned why he had failed bankrupt said his business would not pay. He expected that the early losses would be redeemed when the summer season came round, but this had not happened. One of the creditors said that it did not appear a case of hardship, but of neglect, and the official assignee suggested that there had been a leakage. Bankrupt denied that he had been keeping several families out of the business.

Mr Fisher: I don’t think you have given your creditors anything like a reasonable explanation of your losses. There has been a heavy leakage that you have not accounted for. Is it a fact that your stock decreased very much recently?—No. Mr Fisher: Do you swear that no stock has gone out of the shop except what was the result of legitimate sales?—Yes, I can say that not one shilling’s worth has gone out that is not shown in the books. Creditors agreed it was no use attempting to realise the stock, but to let the landlord, who had a mortgage on the lease, take possession of it and start in business again. Bankrupt said it was a mystery to him why the business had been such a failure, but he denied that he had systematically . neglected it. For over two months he .had been endeavouring to sell, but had failed to find a purchaser.

■The creditors were dissatisfied with bankrupt’s explanation of his trading losses, and the meeting was adjourned to Te Aroha.—Thames Star.