THE CASH SIDE

Rotorua Morning Post, Volume 1, Issue 94, 11 December 1931, Page 7

THE CASH SIDE

FINANCIAL REBUFFS OF WELL KNOWN STAGE PRODUCER. £10,000 LOSS ON TWO PLAYS. LONDON, Monday. Something of the costly uncertainty attaehed to theatrical enterprise was diselosed at the bankruptcy examination of the well known producer, Mr. Andre Eugene Maurice Charlot, described as of the Prince of Wales' Theatre, Coventry Street, W. The gross liabilities, according to debtor's statement of affairs, amount to £60,284, and of these £44,407 are expected to rank for dividend. The assets consist of cash £15, deposited with a solicitor for costs of the bank

ruptcy petition, and a bad book debt . of £405. Debtor gave as the causes of his failure and insolvency liabilities incurred and accepted on behalf of third parties, the slump in theatrical business last year, and the consequent decline in the value of the lease of the Prince of Wales' Theatre. Mr. Charlot began business as a producer of revues in 1915. He had capital provided tjy his f'backers," and to begin with his earnings amounted to £3000 a year. In 1917 Charlot Limited was formed to acquire his business, and he received 98 £1 fully-paid shares, and £20,000 in bonds for its goodwill. As chairman of the company he was paid £60 a week. In November, 1926, the company went into liquidation. Bonds amounting to £9000 were then outstanding. Debtor acquired in 1917 the residue / of the lease and reversionary 21 years' lease of the Prince of Wales' Theatre at a rental of £6000 per annum, afterwards increased by £1400 for the rights in a box and eight stalls. Mr. Charlot agreed that his obligations in connection with the theatre and another lease amounted to £7900 per annum. The theatre was never without a tenant, and did not feel the effects of the slump until last year. Charlot Limited received the benefit of everything, and debtor obtained I nothing beyond his salary of £60 a week. Asked by the Official Receiver whether he could say that he had lived within his income, Mr, Charlot replied that he had with the exception that perhaps he did not make enough provision for income-tax. He was taken ill in June, 1920, with the result that two shows involved him in debts amounting to over £10,000. On his return to business he found it necessary to mortgage leases and borrow £5000 from moneylenders. These loans, however, only proved a palliative, liabilities amounting to £40,000 having piled up against him. In 1925, in order to get out of his financial troubles he entered into an agreement with A.C. (1923) Limited. The examination was concluded.