“DUE TO SLUMP.”

Star (Christchurch), Issue 17221, 12 December 1923, Page 7

“DUE TO SLUMP.”

STOREKEEPER BANKRUPT. ONLY TOOK FOURPENCE ONE DAY. Slump in trade was given as a cause of bankruptcy at a meeting this morning of creditors in the estate of William Stanley Raine, of 451, Colombo Street, storekeeper. Assets comprised stock-in-trade valued at £2OO, and the debts totalled £470, the sum of £3lB being owing to unsecured creditors, and £l5B to the Repatriation Department, a secured creditor. The principal secured creditors were : J. J. Rainet and Co., Wellington, £47; Manning and Doreen, Christchurch. £3O; Mason Struthers, £29; A. J. White, Ltd., £l7; John Burns, Ltd., Christchurch, £29; W. H. Simms and Co., Christchurch, £ls; Sargood, Son and Ewen, Christchurch, £l4; H. A. Papprill, Christchurch, £BO.

Bankrupt said that he began business in crockery and household requisites in January-, 1922. The takings were disappointing from the start, and he had to use capital all the time to carry on. He had to go to other work in June, and since then . his wife had managed the business. He attributed his failure to the lack of trade following on the slump experienced in New Zealand, and to dealing in what were, after all, somewhat slow selling lines. He had never managed to get a profitable turnover. Having sunk all his ow.n capital, and considering the unsatisfactory state of his wife’s health, coupled with the action of his two principal creditors, he had no option except to file. The Official Assignee (Mr A. W. Watters) said the only asset was the stock-in-trade, and he was arranging for an early sale, subject to creditors’ approval. Rent would have to be paid for the shop until the stock was removed to an auction room. The owner of the shop was an unsecured creditor. His debt would be preferential to the extent of £SO. The Repatriation Department’s bill of sale covered the furniture. Tt did not cover the 6tock. A creditor said he did not think the Repatriation Department would take possession of the furniture. It was not worth more than £25. Another creditor said that, after deducting the expenses of an auction sale, advertising and cartage, the estate would not pay Is in the £. It might be best to call for tenders. The Official Assignee said that if tenders were called the gross return would bo much smaller.

It was resolved that the goods should be sold by public auction. In answer to questions, bankrupt said that he put £l4O of his own money into the business, as well as £l5O which he borrowed from the Repatriation Department. His takings up to November 30 were £BIO, and he had paid out £978, including -£ll4 in rent. The Official Assignee said there had been no extravagance. It was an unfortunate venture. “ One day I only took fourpence,” said bankrupt. “ Trade was very poor in Syden’nam.” The meeting was adjourned sine die.