GROCERS' FAILURE

Press, Volume LXVII, Issue 20234, 12 May 1931, Page 6

GROCERS' FAILURE

EFFECT OF TRADE CONDITIONS. i DEFICIENCY OF £3l/1/7. Ascribing their bankruptcy to general trade "conditions and keen competition, Horace Albert and Annie Jay, storekeepers, of 50 Keppell street, New Brighton, disclosed a deficiency of £Bl Is 7d to their creditors at a meeting in the office of the Official Assignee yesterday. , In their sworn statement bankrupts said that in March, 1930, they 'comineiced business in the shop and prernises situated at 100 spf£r&ys road, I'Fendalton, having purchised the business and premises from ilrs A. Carpcn-' ter. The purchase-price' of. the shop and dwelling amounted to £IBSO, subject to a first mortgage of £IOOO and a second mortgage of £6OO, Mrs Carpenter taking over the property situated ut Shirley road, at the,price of £loofy subject to a fUfst mortgagb amounting to £7Bl 4s 9d, . which' included ' interest owing.- After: all adjustments, they had an jequity of £250 in the Jeffreys road property. They took over the stock at valuation, amounting to £.170 18s, -<d, •which they paid for jn cash.; When they took oyer the . business the takings ■were represented to them to be per week,, but the actual aioouttts received Were coh&iderabJyv be?owj .this vtot&l*/ ;tbc result being that they, could, not miake the business pay. They averaged scarce,ly £2O per week; The position grew gradually worse, and boihg .unable to meet their liabilities they were compelled to call their creditors together on October 28th, 1930, They were then unable to pay the rates due on the property, and the interest on the first and second mortgages, and they were compelled to • abandon' jit- to the ; second j mortgagee, Mr T. HaHy, their equity of £250 being lost. - > <

Left the Shop. They left the - shop on October 31st, 1930, and the second mortgagee took over the stock at the amount of valuation made by T. H.: Green and Co., Ltd., namely £B2 2s Id; which amount was at present held by their solocitors, Messrs McLacfrlan .and Hill, for the benefit of the creditors. "At no time shave we lived extravagantly," said the statement, "'and we attribute our position mainly to the general depression in trade. We were further hampered by the fact that a competitor opened up a similar business close to our shop just before we went there, and thereby | we lost a considerable amount of trade. ! We .were also compelled to give extended credit to obtain business, the result being that we had considerable difficulty in collecting amounts owing as many debtors were unable to pay their accounts." They were at present living at New Brighton and had four children to support. Since leaving the shop their income had been derived solely from relief work. A statement of assets and liabilities disclosed that the amount owing to unsecured creditors was £220 0s Bd. Cashin hand totalled £7B 19s Id, and book debtsl £BO lis 3d, estimated to produce £6O, making the total £l3B 19s Id, and the deficiency £Bl Is 7d. Mr E.-N. C. Hill represented the bankrupts. Mr J. H. Robertson, Official Assignee, • who presided, said' that the position of the partnership estate was rather obAlbert Jay,, on oath, said that the' takings in the Jeffreys road shop were only about £2O a week. They found that there was serious competition from two neighbouring shops. Mr Robertson said the. business dealings of the bankrupts appeared to have been quite honest. The estate was left Jn the hands of the Official Assignee.