BANKRUPT PASTRYCOOK

Evening Star, Issue 20048, 13 December 1928, Page 16

BANKRUPT PASTRYCOOK

MEETING OF CREDITORS •The creditors of Andrew Albert Landrebe, a pastrycook, who filed m bankruptcy on December 1, was held yesterday afternoon before tho acting Official Assignee (Mr 1). C. E. AVcbster). The only secured creditor was the Otago Finance and Agency Co., Ltd., £SO 5s (value of security £100). The unsecured creditors to the amount of £lO and over were; Trustees of the assigned estate of G. A. Goughian, £341; Milne, Bremner, Ltd., £23 18s Sd; Taieri and Peninsula, Milk Supply Company, Ltd., £3S 7s 7d; Mercer and Mitchell, Ltd., £J4 14s; Mackerras and Hazletfc, Ltd., £lO 10s (xl; Distributors, Ltd., £25 2s 6d; Murray, Roberts and Co., Ltd-, £3l Is; J. Rattray and Son, Ltd.,' £lO 8s 7d; Dunedin City Corporation (gas department), £ls Ids JGd; Dickinsons, Ltd., £IG 9s lOd; Steel, AVard, Ltd., £l4 4s Gd; Pacific Preserving Co., £37 14s 8d; Gregg and Co., £26 7s 4d; J. AV, Finch, £10; Mrs E. Burke, £2S 19s 3d.

Assets.—Stock in trade, £25: _ machinery and movable shop, fittings, £125; hook debts, £l6 Is; furniture, £3O; surplus from security in hands of secured creditor, £49 15s; total, £'245 16s, leaving a deficiency of £435 35s 2d.

Mr Lloyd appeared for the bankrupt, Mr* .11. L. Fairmaid for Mrs Burke and Messrs Gregg and Co., and Mr F. .T. D. Bolfe for Mr Finrh. Mr W. A. Mitson represented the Goughian estate.

Tho bankrupt stated that he took over .1 pastrycook business from ) the trustees of the estate of Mr Cj. A. Goughian on November 23, 1927. Mr Goughian had a lease of tho premises at 32 Frederick street from Mr J. IV. Finch. Bankrupt took an assignment of this lease for the balance of the existing term—namely twelve years—at a weekly rent of £6, which was reduced to £5 a week on February 20, 1928. The pu'chase price of the stock-in-trade, plant, machinery, and goodwill of the lease was £6OO. When he. went into the business ho had no capital whatever, hut tho trustees of the estate agreed to take seven promissory notes of £7, payable, weekly, and the balance by promissory notes of £5, payable weekly. After _ a month’s business it was clear to him that the turnover was nothing like what he had been led to expect, although the takings were for December —r. busy time of the year. Naturally he was very disappointed He then endeavoured to push the business along by rising a cart and employing four canvassers to sell his goods. He soon found that this method did not, pay, so ho was compelled to dismiss his employees. During the winter months he tried to carry on with a small staff, but the business did not improve. At that time he was paying as much as 2s Sd and 2s 10d per dozen for eggs. It was impossible to make anything like a profit when prices were so high and overhead expenses so heavy. The average turnover in the shop was between £27 and £33 per wcek,_ and out of this sum ho had to pay £-3 a week nmtal, £3 a week to the Goughian trustees, and £6 5s for wages (£5 for a baker and £1 5s for a girl). In addition to these payments he had to meet merchants’ accounts and make provision for bis own personal requirements. His books, which had. been kept by a qualified accountant, would show that he had nit drawn more than £2 per week for living expenses. Both his wife and himself had worked very hard to make the business a success, and had worked on an average sixteen hours a day for the past year. He'had come to the conclusion that the purchase price of the business was far too high; £250 to £3OO would he a reasonable price. Although his wife and he had worked very hard and had lived economically ho was satisfied that tho business could never bo a paying proposition, and no one could make it a successful .undertaking under the same conditions and terms as ho had been working under for the past year. Mr Webster stated that the Cilicia 1 Assignee took .the. business over on December' 1, and for eight days the gross takings had been £36 12s 2d. The bankrupt had drawn only 18s lOd for the personal use of his wife and himself, and after other disbursements the net takings came to £2B 5s Sd. No rental had been paid for this period. Mr'Llovd said that the bankrupt was,'in every way a most conscientious ''°Mr\ r Webstcr stated that the’ bankrupt had not been in business on his own before,, and apparently he had not handled it .too well. On the motion of Dir Milne it was decided that the bankrupt’s discharge be recommended, provided he paid 6s 8d in the £, the bankrupt to retain his furniture. , , , , , . ’ ' Mr Dickinson moved that the business be carried on for a month, the bankrupt to get the usual union rate of wages, and tho matter of realising the business to the best advantage to he left in the hands of the Assignee. This motion also was carried.