TAILOR’S BANKRUPTCY

Sun (Auckland), Volume I, Issue 272, 7 February 1928, Page 13

TAILOR’S BANKRUPTCY

“CASE OF PURE HARDSHIP” CREDITORS SYMPATHETIC The bankrupt tailoring and clothing business of Henry Edward Bunker, late of Queen Street, formed the subject of an inquiry this morning by his creditors in the office of the official assignee, Mr. G. N. Morris. Bankrupt’s schedule showed £1,109 owing to unsecured creditors and £1,240 to secured creditors. The value of securities was given at £1,600. Other liabilities -were shown at £424. The assets which totalled £1,132 included stock £2OO, book debts £4OO, furnishings £l5O and surplus of securities £360. Thus a deficiency of £4Ol was shown. In his statement Bunker said that until March, 1925, he was carrying on a successful business as a tailor on his own account. He then went into partnership with a mercer, but this venture, was never successful. After eight months he found himself with debts amounting to nearly £I,BOO. During this period his partner, who had sole control of the mercery department, ran up large accounts and indented goods unknown to him. In addition his drawings were so heavy that the business was crippled. Financial depression of the last 18 months defeated all his efforts to pay his creditors, and he filed to safeguard their interests. Mr. Morris said he had a valuation of bankrupt’s house which was worth at the present time about £1,300. Mortgages on it totalled £937, so that there was an equity of £360. Examined by the assignee. Bunker said his drawings were £ t weekly. Out of this he paid £3 6s a week off his mortgages, and with the remainder he had to keep his wife and two children. Speaking on behalf of city warehousemen a creditor said the case was one or pure hardship. He moved that Bunker s discharge should be facilitated and the motion was carried unanimously. . “I quite agree.” said Mr. Morris. “Bankrupt’s bookkeeping has all been carried out bv an accountant, and ne never knew the state of his business except by occasional balance sheets, it can he said for him that he did not defer filing until all his assets had been lost, as many bankrupts have done.