GROCER’S BANKRUPTCY

Sun (Auckland), Volume II, Issue 342, 1 May 1928, Page 13

GROCER’S BANKRUPTCY

BIRKENHEAD FAILURE PAYMENTS CRITICISED “I think that if you had handled this business properly you would not be here,” said the official assignee, Mr. G. N. Morris, at a meeting this morning of creditors of William Ernest Roberts, bankrupt grocer, of Highbury Corner, Birkenhead. Bankrupt had debts amounting to £1,513. His assets, consisting mainly of book debts, £535, and surplus of securities, .£237, totalled £1,226. The deficiency was £286. In a statement bankrupt said he began business in 1923 wth about £IOO advanced by his wife. He had had 15 years’ previous experience in the grocery business. Turnover increased rapidly and prospects were good. During the last two years he“ had to stand by many of his customers who were in difficulties through unemployment.” He attributed his failure to lack of capital in running a business not strictly cash, and to two years’ business depression, necessitating giving of credit. Under examination, Roberts said he had not taken out a balance-sheet since 1925 because of pressure of business. The assignee said that it should have been done a year ago. Bankrupt was criticised for selling his business to his brother without consulting his creditors, who were not satisfied with the liberty taken. Mr. Morris remarked ,after close examination that he was satisfied there was nothing “fishy” about the deal. The brother had paid 20s in the £ 1 on the invoice price of the stock, which could not have been bettered. Roberts was further criticised for the way he had paid off some creditors as much as half their account and others one-sixth, instead of making payments pro rata. “I quite believe you attempted to do what you considered the lair thing, but you have made something of a mess of it,” said Mr. Morris. A resolution was carried instructing the assignee to facilitate debtor's discharge.