SHOP ROUND CORNER AFFECTED TRADE.

Star (Christchurch), Issue 18577, 27 September 1928, Page 9

SHOP ROUND CORNER AFFECTED TRADE.

PASTRYCOOK UNABLE TO PAY HIS CREDITORS.

Tom Cuthbert Bell, North Road, Papanui, at a meeting of his creditors to-day, stated that he began business at Papanui in February, 1927, buying a pas try crook’s business from Mr T. Tait for £IOO cash. Having no capital, he borrowed the £IOO, giving the business as security, and agreeing to repay £l2 11s 3d a month. The books he was shown represented the takings as £32 a week. His first week's takings were only £lO. The rent was £3 a week. The takings slowly increased and he kept up his rent and payments on the loan, but could not keep up with his current accounts from the earnings. In April he obtained an advance of £4O against an account of £IOO due to him. With that he paid accounts. A shop round the corner started in opposition and reduced his takings. At the end of 1927 he was behind in his rent, and gave an order on the balance of moneys coming to him. In the winter of 1927 his takings increased £23 a week, but after competition started they fell back until the beginning of this year, when he began to cater for dances. The first few dances paid, but later ones did not. A shop adjoining his began to sell pies, reduc•ing the price and causing him to do the same, reducing his takings. In June last he borrowed £6O, giving security over his furniture. He paid off £2l on accounts and £l2 rent, and used the rest to buy clothing for his family. He continued, hoping that things would improve, but his health broke down, and he could carry on no longer. He paid £23 off the £6O loan. He was married, and had six children, three of them at home.

The debts were set down at £l7l 13s and the assets at £153 7s, leaving a deficiency of £lB 6s. The sum of £52 was owing to a secured creditor, the value of the security being £2OO. The book debts were estimated to produce £5 7s. The only other asset was a surplus of £l4B from the securities. The principal unsecured creditors were:—Farrisy and Macdonald, coal merchants, Papanui, £l4 4s; Coffee and Spice Co., £25 17s 3d; S. V. Turnbull, manufacturer, Christchurch, £9 2s; Miss Jones, £53; Christchurch Produce, Ltd., £3O. The only secured creditor was D. Ell wood, Armagh Street. The Official Assignee said that he could not give any idea of the dividend for creditors. The estate was left in the Official Assignee’s hands, to enable a possible purchaser to make an offer for the lease and for taking the chattels at a valuation.