FORMER AIRMAN NOW A BANKRUPT

Sun (Auckland), Volume I, Issue 205, 18 November 1927, Page 13

FORMER AIRMAN NOW A BANKRUPT

“GENUINE BAD LUCK” SHOP VENTURE FAILS A squadron commander in the Royal Air Force with an honoured war record—now a bankrupt confectioner of Otahuhu, broken in health, and unable to do any but light work. Such is the history of George Fran-' cis Bishop, who met ffis creditors at a meeting this morning, under the presidency of the official assignee, Mr. G. N. Morris. Creditors expressed sympathy with the bankrupt, agreeing that his was a genuine ' case of misfortune. After Bishops had been examined the meeting recommended that his discharge be facilitated. Bankrupt’s schedule showed £165 owing to unsecured creditors, and £1,337 to secured creditors. The assets totalled £209, including £ll2 surplus of securities and furniture £53 The value of securities was set down at | £1,450. A nominal surplus of £44 was disclosed. DEBTOR’S EXPLANATION Bishop furnished a written statement in which he said that he had. been farming prior to taking over the confectionery business. While on the land he had to undergo an operation which rendered him permanently unfit for heavy manual work. Failing to obtain light labour he decided to invest his savings of £220 in a small business. The price of the business was £1,450, of which he paid £2OO deposit, raising mortgages for the balance. As time went on he found he could not increase the takings to anything like the turnover he had understood. Boarders were taken in and for a time the business looked promising. Then lie forbidden by the Labour Department to sell groceries and tobacco unless extensive alterations were made to the shop. He was not able to carry these out and so lost the benefit of a profitable line. His head was injured in the war when his ’plane crashed, and the worry of his business brought on his trouble again. Bishop said that his failure was due to the fact that he paid about £250 more for the business than it was -worth, lack of reserve capital, trade depression and his bad health. Under examination bankrupt said he took over the business in November last year. He was then informed that the average weekly turnover was £22, whereas he had averaged £l2 a week. When he took over the shop a year ago his agent had informed him that the value was there, but when he had it revalued yesterday it was not worth more than the mortgages upon it. He had no previous experience of shopkeeping in this country, but in England he had assisted his fathers business. During the past year his weekly drawings were about 30s. Bishop said that he had a job in view, and if he could possibly do so he would endeavour to pay his creditors. “This is a genuine case of bad luck and inexperience,” said a creditor. “Bishop had been foolish in taking over a business without some documentary evidence of the actual turnover.” Other creditors agreed that debtor had been very unfortunate. He had always been honest and straight-far - ward in his dealings with them.