BANKRUPTCY OF FLORIST

Taranaki Daily News, 8 June 1932, Page 12

BANKRUPTCY OF FLORIST

HIGH PURCHASE PRICE CAUSE. DISCHARGE TO BE FACILITATED. That bankrupt’s failure had been primarily due to the high price lie had paid for his florist’s business in Devon Street, New Plymouth, in 1929 was recognised at a meeting of the creditors of C. C. Gilbert at the office of the deputy official assignee at NCw Plymouth yesterday. It was decided to facilitate Gilbert's discharge. Those present at the meeting were Messrs. V. C. Davies (representing Duncan and Davies and F. Cooper Ltd.), F. S. Varnham (Taranaki Herald Co. Ltd.) and A. Patrick (Newton King Ltd.). Bankrupt was represented by counsel. Debts owing to unsecured creditors amounted to £572 17s 3d and other liabilities (rent) to £133, making a total debit of £705 17s 3d. Assets, including stock in trade of an estimated value of £354 10s Bd, credit at 'bank 7s, book debts estimated to produce £3l 15s Id and fittings £2OO, totalled £5BO 12s Od, leaving a deficiency of £ll9 4s fid. Gilbert in a written statement said he purchased his Devon Street 'business » from Mrs. Gavey on December 1, 1929, the purchase price being £725 aiid goodwill £5O, Ho paid £2lO cash, the balance being secured by promissory notes. Ho had since paid Mrs. Gavey £237, which included principal and interest. Since Christmas business had dropped very considerably, more than * he had , anticipated. Taranaki Amu&ehientS Ltd., from which Gilbert leased his premises, on May 23 distrained for the amount of rent owing and the bailiff was in possession at the date of the statement. On May 25 a private meeting of his creditors expressed the opinion that the only course was for Gilbert 1 to file in bankruptcy. Gilbert attributed his position to giving too much for the business and stock not readily saleable, paying too high a rent for the class of business and having to face strong competition at low rentals. The demand for floral work had diminished greatly in the depression. Gilbert was a married man with two children and his living expenses had ’ been kept as low as possible. His wife had helped him in the shop and had 1 received no wages. - The deputy official assignee (Mr. J. S. 8. Medley) said Taranaki Amusements Ltd. had asked him to guarantee the rent but he had not been able to do that. He had asked the company to refrain from holding the auction sale till after the meeting and this it had been agreed to do. Apparently, however, the sale was even then being held. He did not expect the stock sold at auction would 1 ' realise the amount owing for rent. Gilbert, examined under oath, said he had been paying £1 10s weekly for rent but that had been reduced to £1 4s. He had no motor-car or cycle. Two life insurance policies for £2OO and £3OO were fully paid up to date. His living expenses had been kept down and he had approached Mrs. Gavey to postpone the payment of the promissory notes without coming to a satisfactory arrangement. Mr. Medley said it was apparent that Gilbert had paid too much for ths business. The creditors agreed that it would not be fair to expect Gilbert to mortgage his insurance policies to enable a dividend to be paid and a. motion recommending that the discharge be facilitated was passed. A motion that the amounts owing to unsecured creditors should not be published was moved by Mr. Patrick and passed, The unsecured creditors were F. Cooper Ltd. ('Wellington), A. Yates and Co. (Auckland), Taranaki Herald Co. Ltd. (New Plymouth), Harrison’s Nurseries (Palmerston North), Newton King Ltd. (New Plymouth), Anderson and Son (Napier), Mrs. E. L. Hooker (Wanganui), M. Exler and Son (Auckland), Watkins and Simpson (Covent Garden, London). Duncan and Davies Ltd. (Westown), F. W. Saunders and Co. (Hamilton), Dr. Brewster (New Plymouth), lona Private Hospital (New Plymouth), Hamilton and Bailey (New Plymouth). Fur Trading Company of New Zealand Ltd. (Wellington) and Mrs. Gavey (Masterton).