CREDITORS OF CITY FIRM HOLD MEETING.

Star (Christchurch), Issue 18189, 23 June 1927, Page 6

CREDITORS OF CITY FIRM HOLD MEETING.

At a meeting on Tuesday of creditors of Swann, Larcombe, and Aloore, Ltd., which went into liquidation in February last, the liquidator, Air S. Clifton Bingham, reported:— “I was appointed liquidator at a special meeting of shareholders of Swann, Larcombe, and Aloore held on February 25. The stock was then estimated at £3600, but it appeared to me to be very much less, the Alanchester department, especially looking depleted. To protect the creditors and myself, therefore I closed the doors and had stock taken rnst mice as far as could be ascertained The total came to only £1959 Is 6d. * After consultation with advisors (ATessrs Airey and Hercus), it was decided to call for tenders (alternative) for stock in each of the three shops, fittings, and goodwill of lease No offer was received for the last item. Tenders were opened on March 18, when, after considering various methods of disposal to the best advantage of “vervone concerned, it was unanimously decided to accept the hishest tender for the stock, viz., 10s lid in the C. The best offer for cat* obtainable was £SO cash, which T accepted. The cash register was under bailment, and instalments amounting to £B4 unpaidAfter vainly trying to obtain a. cash buyer for something over that figure, which 1 found impossible, as secondhand machines of that size are on the market from £BO up, I surrendered it. Leases of shops in Colombo and Y\ orcester Streets, having some years to run. a claim was made by the landlord of £750. The Act unfortunately does not give a liquidator power to disclaim. After procuring an independent valuation the claim was settled for £SOO. satisfactorily so. In my opinion. This is of course, subject to dividend paid. ’“The book debts were estimated at £llOO. These are proving very difficult of collection, having been in the hands of two solicitors and one debt collector previous to liquidation. One lot of these was to cover loan of £3OO raised in November with interest, £l9 10s. which was repaid in January, whilst the proceeds of another lot wore paid into the credit of an Australian firm by agreement. Amounts are coming in very slowly. Alany are dispute.l with allegations of payment made to shop or traveller, unrt It would ho upwist- to place much value on the asset. As far as 1 can understand credit has been Riven without inquiry or care, resulting in a quantity of goods going out on small deposit, and frequently no further payment made. Three or four country travellers were employed ?nken 1 of* enodlTh*b? by °them°, U showlng great laxity in this resepet. 1 have prepared from the books of the company, trading account and profit and loss statement for tlio eleven months ended February 25, showing a loss of £4058. Accounts prepared by Air Swann, who kept the books, show a profit of £473 for twelve months ending Alarcli 31, 1926, and £167 3s Cd brought forward from previous period. Against : this is an item to credit of goodwill and preliminary expenses of £232 3s, I whilst no depreciation was written off 1 furniture, fixtures, or fittings. As some - 1 creditors were outside New Zealand, it * limit for proving debts. The amount 1 proved, including claim on leases, was • , £7434 0s 2d. I propose to pay out a i | dividend of 2s In the f on Alondu> * I IIC Mr H. J. Beswlek, to test the feel- ’ I ing of the meeting, moved that proceed- ) I jngs should be taken under Section 17( t |-of the Companies Act. He said tha- .. some debts had been incurred after tin s firm was hopelessly insolvent. t 2dr W. Scales seconded the motion t which was lost. The liquidator said that he hoped t< ’ make the dividend up to 2s 6d, possibly 1 up to 3s. The liquidator’s actions were endors