Shortness of Trade and Selling Under Cost – Deficiency £1,484

The first meeting of creditors under the bankruptcy of Robinson and Marshall, boot manufacturers, of Rushden, will be held at the office of the Official Receiver, Northampton, tomorrow. The statement of affairs shoes liabilities £1,674 16s. 11d., assets £190 15s. 3d., deficiency £1,484 1s. 8d.

The causes of failure, as stated by A. Robinson, are shortness of trade and selling stock under cost. E. J. Marshall states that he cannot give the cause of insolvency as he had nothing to do with the financial side of the business. The deficiency is accounted for as follows: Net loss from business, £627 15s. 2d.; bad debt, 17s.; depreciation of stock, £158 9s. 6d.; depreciation of machinery, £59; and drawings of partners, £728. These items, less £90 excess of assets over liabilities on March 1st, 1919, total £1,484 1s. 8d.

The Official Receiver, in his observations says that the debtors, aged respectively 37 and 46, were employed as operatives until February 1919, when, with two others, they commenced business as manufacturers, each contributing £23. Robinson superintended the factory and kept the books, and the other three worked outside as lasters, there not being room for them in the factory. It was arranged that each should draw £3 10s. a week. No deed of partnership was executed, and it is probable that all the parties to the arrangement are liable, wholly or in part, to the creditors. In November 1920, in consequence of several creditors suing, advice was sought and a deed of assignment executed by debtors on November 22nd. A meeting of creditors was held on Dec. 7th last. The statement of affairs then presented showed liabilities £1,674 6s. 11d., assets £173 110s. 9d., deficiency £1,500 16s. 2d. No proposal was then made, and it was decided that the debtors should file a petition or the creditors should do so. The petition was filed by the creditors.