CHRISTCHURCH WHOLESALE CLUB.

Manawatu Herald, Volume XXXIII, Issue 991, 13 May 1911, Page 3

CHRISTCHURCH WHOLESALE CLUB.

CLOSES DOWN IiOYCOTT ALLEGED. CHRLSTCIH’RH. May 0, The collapse of the Wholcsah- Club, 1.1 d., which has had a meteoric career. In -■ been the talk of the town during the I sis!, few days. It is understood that at a meeting of (lie principal creditors the liabilities were -liown to be ±113,919, not inebtding goods in bond for ±I3OOO. The assets shown were stock (face value) £IO,OOO, fittings ±±2200, uncalled capital £6500. It was estimated that in the event of realisation tins stock might bring 12s 6d in the pound and the liftings £SOO. It is also understood that the debentureholderl:’ claim, amounts to £3OOO. It was thought that some offer might l,e received for the club as a. going concern, but as none was forthcoming it was decided to close the premises and put up the slock for tender. THE CLUB'S TRIBULATIONS.

The Club’s tribulations and dilliculties ft ml the reasons for its future were stated by Mr George Davies, the managing director. “When we started the club.” he said, “we felt sure that we had found an economic principle of trading which could he worked in the interests of the public and ail concerned. In the first, place we knew that the essence, of safe trading was sound buying. In order to place ourselves on a sound foundation for buying, we sold our wares for tho start at a very small profit. Wo had been going only a, fortnight when sumo of tho warehouses in (he city established an absolute boycott. Wo went as far as to go direct to the warehouses with cash in our hands. liven then they refused to supply us with goods, and people call this a free country I However, wo wore not to be daunted. Wo bought out a warehouse and took over all tho goods it had landed. Wo could see then that the boycott would be too strong for us unless we organised a. much larger concern, sufficiently capitalised. There was a lot of talk about our balance-sheet at that lime, but, we were at out- wits’ ends and had no time to take stock and issue balance-sheets just then. We published a prospectus in the newspapers. The shares were absolutely rushed on the lir-t day. if we had been left alono we have every reason to believe the undertaking would have been a brilliant success for all parlies, but. as soon as tlio prospectus was is-ned one of tin* city journals took up a very antagonistic attitude. The result was Unit, the demand for shares fell olf considerably, and in order to save' the position the directors put up their own money and .subscribed for (lie shares. We then removed from Worcester street, where we had started, to larger premises in Manchester street, and began operations there. The ilrst shipment of goods was landed from the manufacturers, but the banks practically refused to hand the goods over. This placed ns in a more unfortunate position than ever. To combat these tactics Mr Alcorn and 1 took upon ourselves, in consideration of the interests of all, to guarantee tho club to the extent of £6OOU or more. Wc put in our money to tho lust penny, and wc have lost practically everything. The whole tiling has been a short but strenuous light between tho organised trade of the city and tho Wholesale Club. The organised trade fought as wo certainly should have fought if wo had been on the other side. Wo acknowledge our defeat. We have done our best; wo can do no more.”

CONCERN GOES INTO LIQUIDATION. CHRISTCHURCH, May 11. An informal meeting of tho creditors ot the Wholesale Club was held this morning. A number of creditors were present, and proceed in,gs wore conducted in private. It is understood that after some discussion it was decided that the company ■should go into liquidation. From the figures submitted to the meeting it would appear that the dividend that will be available for unsecured creditors will be a slender one. It is stated that a good deal of indignation was expressed by several credi. tors, and it is considered probable that interesting developments may arise in tho near future.