“BIT OF A GAMBLE.”

Star (Christchurch), Volume XLIV, Issue 493, 30 June 1932, Page 11

“BIT OF A GAMBLE.”

Bankrupt Hairdresser’s Business. UNSATISFACTORY POINTS. An admission that his last venture into business was a bit of a gamble was made by Thomas Arthur Candy, of 95, Strickland Street , a bankrupt hairdresser, who met his creditors this morning. The Official Assignee (Mr J. IT. Robertson) said that creditors could confidently expect no dividend, or at best a small one. He added that there were certain unsatisfactory features about the failure which would be put before the Court when Candy applied for his discharge. Bankrupt’s statements showed that £306 14 7d was owing to unsecured creditors, of whom there were thirty with the largest debt £4l 12s. A secured creditor was the State Advances Superintendent, who was owed £lll6, which was covered by a property. Assets amounted to £l9 18s, and a nominal deficiency of £346 18s 7d was shown. The Official Assignee said that preferential claims totalling £l4 18s 4d would have to be met, so that there was small chance of a dividend. Rental of Shop. Bankrupt stated that he had set up in business in a shop in Hereford Street in December last year. He took a lease foJ five years at £6 a week, and he attributed his failure to the payment of a rental that he considered to be far too high. Questioned by Mr Robertson, bankrupt said he was a married man, thirty-two years of age, with three children. He had had two other shops prior to the present venture. He had started with £135 capital, but had started off practically insolvent, as he owed £BO in various quarters, besides £75 to the State Advances Department. Mr Robertson told the meeting that Candy’s takings this year had been: — January £25, February £45, March £SO and April £22. He had closed down in April, having taken £144 in four months. He had paid £4 10s a week for assistance: for March that would amount to £lB, while £24 in addition would have to come out of the £SO takings for the month. Cost of Hair Waving. Bankrupt stated that he did a certain number of hair waves for prices ranging from £1 to 355. In such processes the materials used tost 7s, or 25 per cent. Mr Robertson: What about a racehorse and sulky at your place?—That is a yearling which belongs to mv brother-in-law. You are a horse-trainer, too?—Well, I have done a little, but I have no interest in the horse. Do you gamble?—No. I might put 10s on a race occasionally, but I call a man a gambler who puts on £SO or £IOO. Don’t you think the business was a bit of a gamble?—l suppose it was. Bankrupt said he could make no offer, as he was out of work. Started Without Capital. The Official Assignee stated that the meeting would simply .have to leave the estate to him to wind up. There were more assets than had first appeared, but there would not be much of a dividend. It was not a very heavy bankruptcy, as bankruptcies went these days, but there were certain unsatisfactory features. Bankrupt seemed to have started with no capital, and that aspect would have to be put before the Court when Candv applied for his discharge. People who went into business with no caoital and incurred liabilities could not be encouraged. The meeting decided that the Official Assignee should wind up the estate.