Yesterday the statement of affairs in the bankruptcy of Mr. Geo. Denton, of Eastfields, Rushden, was received by the creditors. It shows a deficiency of £18.877-1-0.
The statement says that Mr. Denton carried on four businesses. He traded at High-street Rushden, under the style of B. Denton and Son ; at Moor-road, Rushden, under the style of F. Noble, boot and shoe manufacturer ; at Church-street, Rushden, as a cycle manufacturer, under the style of “The Lightstrung Cycle Co.” ; and at Sartoris-road, Rushden, as a joiner, under the style of the Rushden Machine Joinery Works. The summery of the debtor’s statement of affairs shows :-
|
£
|
s.
|
d.
|
| Gross liabilities |
71,201
|
19
|
2
|
| Of which there is estimated to rank for dividend |
28,914
|
13
|
9
|
| The assets, after deducting creditors for rent, rates, taxes, and wages, are estimated at |
10,037
|
12
|
9
|
| Leaving a deficiency of |
18,877
|
1
|
0
|
Causes Of Insolvency
The debtor states : - The failure of F. Noble and Co., Ltd., Hackney, London, has been the immediate cause, but I must also add the depreciation in my real property and other assets.
The deficiency accounts shows :
|
£
|
s.
|
d.
|
| Excess of assets over liabilities on December 31, 1906 |
31,604
|
8
|
6
|
| Less taken as owing by F. Noble, Moor-road, in B. Denton and Sons' account in error |
3,255
|
18
|
6
|
|
28,343
|
10
|
0
|
| Small profits |
370
|
0
|
0
|
| Deficiency |
18,877
|
1
|
0
|
| Leaving a total to be accounted for of |
47,595
|
11
|
0
|
| This is done as follows :- |
|
|
|
| Net loss arising from carrying on business from December 31, 1906 to date of Receiving Order, October 11 |
4,623
|
15
|
6
|
| Bad debts, etc., in connection with F. Noble and Co., Ltd. |
9,098
|
9
|
3
|
| Household expenses |
853
|
16
|
7
|
| Depreciation of real property |
11,363
|
10
|
0
|
| Depreciation of shares, machinery, etc. |
7,973
|
11
|
7
|
| Losses on farming and various businesses |
3,137
|
15
|
9
|
| Interest on mortgages, etc. |
1,699
|
6
|
4
|
| Loss in regard to guarantees F. Noble and Co. |
8,035
|
6
|
0
|
|
47595
|
11
|
0
|
Official Receivers’s Remarks
In his observations, the Official Receiver (Mr. Alfred Ewen) says :-
The debtor, who is 58 years of age, began business at High-street, Rushden, as a boot and shoe manufacturer, about 40 years ago with a free capital of £3.500 consisting of £2,000 cash and £1,500 the estimated value of freehold premises. He personally superintended this business, but during the course of years he extended his activities in various directions, and made himself responsible for so many different concerns that adequate personal supervision of them all became impossible.
At the date of the receiving order the following
Were being carried on by the debtor :-
(a) B. Denton and Son, boot manufacturers, High-street, Rushden. - In connection with this business the debtor, about 20 years ago, built a factory at Irchester for the special purpose of executing Government contracts.
(b) F. Noble, Moor-road, Rushden. – This was a business factory purchased in 1902 from the trustee of Frederick Noble. The business has since been conducted by the debtor. Mr. F. Noble being his manager. There is a workshop in connection with this business at Yardley Hastings.
(c) Joinery works, Rushden. – In September, 1896, the debtor bought from Mr. E.T. Trenery “The Rushden Machinery Joinery Works.” The object of this was to supply packing cases and the other businesses.
(d) Lightstrung Cycle Co., Rushden. - Purchased about 1899 from the trustees of William Okins, cycle manufacturer, Church-street, Rushden, and since carried on by the debtor. In connection with this business there are three agencies, viz; at Wellingborough, Raunds, and Irthlingborough.
(e) Farm at Rushden. - The debtor’s father at his death, left a farm charged with certain annuities. It was continued on behalf of the family for some time, but as it did not pay the debtor [purchased it from his father’s estate, and since then has farmed it on his own account.
All the above concerns were being carried on at the date of the receiving order, but in addition the debtor had at various times previously been interested in the following
and the facts in connection with these must also be stated in order that the present position may be fully understood :-
(a) Boot manufacturing business, formerly carried on by Mrs. Bull. - The debtor, with a view of assisting Mrs. Bull, about seven years ago, purchased this business, carried it on for several years at Rushden, but as it was not successful it was wound up with an estimated loss of over £2,145 8s. to the debtor.
(b) Grocery business at Rushden. - This business formed part of the estate of the debtor’s late father. He took it over and ran it successfully for many years, but finding it was failing he wound it up in the present year, and estimates that he has lost altogether in connection therewith £1,500. There is a liability of about £227 outstanding with reference to this business.
(c) Wilkins and Denton, Ltd., London, boot factors. – The debtor was formerly partner in this business, which was turned into
in July last, the debtor being appointed a director, but it is understood that he has resigned his position and is not now interested in this firm.
(d) F. Noble and Co, Ltd. Hackney, London. – About four years ago the debtor purchased from the trustee of the estate of Mr. F. Matthews, the business formerly carried on by him. After a few months’ trading the debtor turned it into a limited company (of which he was the largest shareholder) under the name of “F. Nobles and Co., Ltd.” The company is now in liquidation, and the debtor estimates that he has lost very heavily in connection with this business.
The amount of Unsecured Indebtedness,
£11,166 3s. 3d., is due to 258 creditors, of whom 109 are for debts over £10, and an examination of the list shows that the indebtedness is respect of each business is as follows :-
|
£
|
s.
|
d.
|
| B. Denton and Son |
6292
|
5
|
8
|
| F. Noble (Rushden) |
3032
|
2
|
11
|
| Joinery Works |
200
|
15
|
0
|
| Lightstrung Cycle Co. |
1413
|
5
|
4
|
| Late Grocery Business |
227
|
14
|
4
|
|
11,166
|
3
|
3
|
The debtor was formerly a partner with Mr. T. Wilkins, and they carried on business as boot factors and Government contractors at Basinghall-street, London. The
began in February, 1900, and continued until the business was turned into a Limited Company, July 31, 1907. After this arrangement the debtor’s share in the business was satisfied by the issue to his nominees of fully paid up shares to the extent of £10,500. Of these shares 1,000 issued in the name of George Denton, have since been assigned to the bank.
The figures disclosed by the deficiency account are so serious that I called for particulars of the capital account, upon which the debtor based the item “excess of assets over liabilities on the 31st December, 1906.” From this it appears that after making a deduction of £3,255/18/6 mentioned above, the debtor alleged that he was worth £28,384/10/-, so that according to
he has lost £47,595/11/- in nine months.
The figures given by the debtor make a total loss in connection with F. Noble and Co., Ltd., of £21,000. The Official receiver goes on :-
It appears from the above that the debtor must have been aware for some time that he was in a most serious position with regard to his connection with F. Noble and Co., Ltd. In the above mentioned capital account there is stated to be £10,451/13/9 due to the debtor from Wilkins and Denton, Ltd., and this sum it appears has been, as a fact, handed to him since the capital account of December, 1906, but it does not now appear in the shape as an asset, having been disposed of in the issue of shares as stated above.
After making every allowance, it is difficult to understand how the debtor could have thought himself worth £31,604 8s. 6d. on Dec. 31, 1906, having regard to the statement which he is now compelled to submit to his creditors. It will be for the trustee and the creditors to consider whether anything that has taken place between January 1, 1907, and the present time can be challenged on behalf of the general body of creditors.
set out in the Statement of Affairs show the aggregate amount estimated to be due to all the going concerns, and an analysis of this has been made for reference; but it should be observed that out of the bad debts, £3,342 14s. 11d. is in respect of F. Noble and Co., Ltd.
On the application of creditors for upward of £20,000, I appointed Mr. A. C. Palmer, of the firm of Messrs. A. C. Palmer and Co., chartered accountants, Northampton, as special manager to carry on the various businesses up to the first meeting of creditors. To have immediately closed all the various concerns would have incurred heavy loss inasmuch as it would have given rise to claims in respect of damages for unfinished contracts, in addition to spoiling any hope of being able to sell any of the businesses as going concerns.
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