A Rushden Boot Manufacturer Fails — “Want of Capital and Bad Debts”

A bankruptcy order having been made in the case of John Arthur Robinson, boot manufacturer, Duck-street, Rushden, the statement of affairs has been issued by the Official Receiver (Mr. J. Osborne Morris). The liabilities are estimated at £625 8s 3d., of which £593 7s 9d is expected to ra??…….The assets are: Cash, £10 13s 3d.; stock, £38 10s., machinery, £79; trade fixtures etc., £13 10s.; deposit with Friendly Society, £1 19s 11d.; and one book debt, £1 4s 6d., making less £2 0s 5d for preferential claims, £142 17s. 3d., and leaving a deficiency of £420 10s. 6d. The debtor ascribes his failure to “want of capital and bad debts.”

The Official Receiver, in his observations states that the debtor was employed in the shoe trade until June, 1919, when he and Frederick A. Corby commenced business in partnership as boot manufacturers, and traded as Robinson and Corby, in Harborough-road and Oswald-road, Rushden. Each partner contributed £80. The business was successful up to Christmas 1921, when a big loss was sustained in connection with a debt of £320, of which only £90 was received. In August, 1922, the partnership was dissolved, and Mr. Corby went out, taking book debts to the value of £30 as his share.

The business was continued by the debtor, who considered that he was then too deficient. He consulted all the creditors, and informed them of the position, and they agreed that he should go on. He borrowed £50 from his wife for this purpose.

In December, 1922, another bad debt involved a loss of £130, and the business had since gradually declined. The debtor admits that he has known since the dissolution of the partnership that he had not sufficient to pay all his debts completely.

Rushden Bankrupt’s Ill-Luck — Bad Debts Lead To Failure.
A Loss of £320.

John Arthur Robinson, boot manufacturer, 52 Harborough-road, Rushden, and carrying on business at Duck-street, Rushden, came up for his public examination at the Northampton Bankruptcy Court on Tuesday before Mr. Registrar Percival.

The statement of affairs showed liabilities £503 7s. 9d., assets (after deducting preferential claims) £142 17s. 3d., deficiency £420 10s. 6d.

In reply to the Deputy Official Receiver, the debtor said that before he started on his own account in June, 1919, he was a machine operator. He went in partnership with Mr. Frederick A. Corby, although no formal deed of partnership was executed. The profit and loss, it was agreed, were to be shared. At the outset the business was a success until they were hit by the news of a bad debt of £320 at Christmas, 1921. They were all right up to that time, but they only received about £90 in settlement. The loss caused their creditors to want money at once, and forced them to borrow to get out of the mess. They were, however, solvent. Corby went out in August, 1922, because there was not enough work for both of them, and took as his share book debts amounting to £30. At the time of the dissolution the business was not quite solvent, and he informed most of his creditors of the position. His wife advanced him £50, and he carried on from hand to mouth until December, 1922, when he sustained another bad debt of £130. On that debt there had been no dividend. After that hit he lost some customers, and from that time he was pressed by his creditors. He commenced borrowing, but, with the exception of £25, he had repaid the whole of his borrowings. Since the dissolution he had known he was insolvent, but he did not close the business until last Whitsuntide.

The examination was adjourned until Oct. 7th.

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Note: The adjourned examination was not found in Rushden Echo