AN AUCKLAND BANKRUPTCY.

Gisborne Times, Volume XIX, Issue 1571, 29 September 1905, Page 3

AN AUCKLAND BANKRUPTCY.

A BAKER WHO HAD 14 SHOPS.

The statement of the affairs of Mr J. C. Legg;, baker and confectioner, of Auckland,and suburbs, sets out that the liabilities total £2OIB 18s. Qd, and the assets £1847 2s. 2d, leaving a deficiency of 16171 16s 7d. The principal creditors are : A. D. J. Adkins, of Burcher and Adkins, merchants, £435 I2S * 6d; J. Clarke, merchant, £266 7s. iod ; London Dairy Company, 16124 75. id; Northern Roller Milling Company, £428 us. 8d; R. W. Martin and Co., grain merchants, £93 13s 7d. The assets include shop fittings, plant, and stock on hand, valued at £1707 2s. 2d; book debts, estimated to produce £l2O ; and cash in hand, £2O. The bankrupt states he commenced business in Auckland as a baker and confectioner in January, 1900, in the shop in Karangahape Road still occupied by him. He bought the appointments of the shop for £6O. There was little trade attached to the shop, but he soon worked up a good business. As trade increased he opened a shop in Victoria • street, paying £22 for fittings, etc., and £SO in renovating the premises. He then took over a shop in Ponsonby Road, the fittings of which he also bought. He took a lease of these premises (the owner enlarging the bakehouse) for 10 years from January 1, 1902, at a rent of £2 per week. He spont about £7O on the premises. From time to time he took over six other shops, including one in Queenstreet. For the stock and fittings in the last-named shop he paid £l7O, and had since spent £ioo in improvements. Owing to the death of his father in November, 1902, he wished to pay a visit to England, and accordingly took in Mr A. V.J, J. Adkins as partner, to ensure the business being carried on in his absence. At that time (March 21. 1903) his liabilities amounted to £SOO, and a valuation of stock, etc., then made showed that the assets were worth £I2OO. It was arranged that he should pay existing liabilities and find stock to the amount of £3OO, making a total capital of £ISOO. Mr Adkins paid £750, and became half partner in the business on these terms. He (Legg) left for England in March, 1903, and returned to Auckland in August of the same year. The partnership existed for a year, during^which time they at

acquired a shop at Devoriport. Mr Adkins retired then, leaving his share of the capital, estimated at £7OO, in the business, repayable by instalments of £25 a month with interest. Legg afterwards added four other shops, making a total of 14 shops, and finding he had not sufficient capital to cope with the business he tried to float it into a limited company. Being unable to do this, he attempted to dispose of some of the shops, but could not do so except on terms, which he accordingly did, and continued to serve them. The result was a loss. In JJecember and January last he took a contract for the catering of the New Hymouth Exhibition, which involved his personal attendance at New Plymouth. During his absence in the Christmas and New Year holiday time there were heavy losses in the manufacturing part of the business, and the business generally suffered very considerably whilst he was away. He attributes his failure mainly to expenses in attempting to float the company, loss of trade on the Bridgestreet and Park Road shops, owing to the closing of the cemetery bridge, losses through his absence at New Plymouth, and a general falling off in trade owing to increased competition.