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| The Rushden Echo,8th May, 1925, transcibed by Gill Hollis |
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C. Bull & Co.
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RUSHDEN FIRM’S DIFFICULTIES CREDITORS ACCEPT 75 PER CENT COMPOSITION SYMPATHY WITH PRINCIPAL Yesterday a meeting of the creditors of Messrs. C. Bull & Co. (Rushden) Ltd., boot manufacturers, Manton-road, Rushden, was held at the Queen Victoria Hotel, Mr. H. C. Palmer (representing Messrs. Munt Bros. and Co., Smithfield) being voted to the chair. Mr. G. S. Mason, solicitor to the company, said that Mr. Alfred Clayton, managing director of the company, had told him that the whole matter came quite as a surprise to him. However much the creditors might feel sorry for themselves, they would feel sympathy with Mr. Clayton, who had been most unfortunate in his business in the last six months. Mr. Hodge, of Kettering, accountant to the firm of Messrs. C. Bull & Co., gave the statement of affairs as follows:- Liabilities: Unsecured creditors, trade accounts £4,188. 19s. 2d., loans (A. Clayton) £1,055. 3s. 6d.; National Provincial Bank, overdraft and interest accrued (hold collateral security), £887. 0s. 10d.; liability for calls on partly paid shares, £140.00; contingent liability on bills discounted, £984 4s. 9d.; contingent liability for further calls on shares, £300; preferential creditor for rent deducted per contra, £50; a total of £6,271. 3s. 6d. Assets: Cash in hand, £2. 17s. 1d.; bills receivable in hand £31 10s. and sundry book debts £801. 14s. 3d., less estimated discount and reserve for doubtful debts £144. 19s. 6d., £688 4s. 9d.; stock-in-trade (cost £4,754. 6s. 4d.) estimated to realise £3,565. 14s. 9d.; plant and machinery (as per balance-sheet £2,038 5s.) estimated to realise £1,220. 5s. 6d.; director’s loan (Mr. Selwood, £162. 4s. 9d.) expected to realise nothing; less preferential creditor for rent, £50; a total of £5,427. 2s. 11d; leaving a deficiency of £844. 0s. 7d. To the unpaid capital liable to be called up, £300, no value was attached. The deficiency as regards creditors was £844. 0s. 7d., share-holders £4,462, a total deficiency of £5,306. 0s. 7d. The list of creditors was as follows: National Provincial Bank, Ltd., Rushden, £887; W. L. Hector, Ltd., Higham Ferrers, £782; Munt Bros. & Co., Smithfield, £770; Sanderson, Reid, & Co., Ltd., Leicester, £487; England Smith & Co., Ltd., Rushden, £453; Courtney & Co., Ltd., Northampton, £218; Boston Tanneries, Ltd., Liverpool, £290; Phipps and Son, Ltd., Northampton, £150; H. W. Chapman, Ltd., Wellingborough, £111; W. W. Chamberlain, Ltd., Rushden, £110; Lipscombe, London, £102; Fred Hawkes, Rushden, £76; G. Skelton and Son, Birmingham, £55; William Paul, Ltd., Leeds, £46; Bale Engineering Co., Ltd., Leeds, £52; J. Harris and Sons, Ltd., Cockermouth, £44; Cox and Son, Rushden, £36; British United Shoe Machinery Co., Ltd., Leicester, £25; A. W. Durrad & Co., Leicester, £23; Redferns Rubber Works, Ltd., Hyde, £23; Margrave & Co., Ltd., Swansea, £20; Wood Malyenan & Co., Glasgow, £18; Alsop Bros., Ltd., Northampton, £17; F. H. and H. S. Pochin, Leicester, £16; H. Hodge, Kettering, £13. Mr. Hodge said that the above totalled £4,936 13s. 7d., and with the addition of 30 creditors each under £10 there was a total of £5,076 due to creditors. Trade accounts amounted to £4,188 19s 2d., and the amount due to the bank was £887. 0s. 10d. Then there was a loan by Mr. Clayton of £1,055 3s. 6d. There was the liability for calls on partly called-up shares and £50 owing for rent due on Lady Day to Mr. Clayton, who owned the factory. Mr. Bodge said that, as most of the creditors present were aware, the business was an old-established one. The EARLY PARTNERS were Mr. Bull and Mr. Alfred Clayton. On the death some years ago of Mr. Bull, Mr. Clayton continued as sole proprietor, and then was joined a few years before the war by his son, Mr. Walter Clayton. The partnership was dissolved in August, 1921, after stock-taking, at which time the whole of the capital belonged to Mr. A. Clayton. On Jan. 18th, 1922, the business became a limited liability company, Mr. A. Clayton receiving 3,661 £1 shares as fully paid for the assets taken over. There was no goodwill in the settlement. Mr. Frank Selwood, who had joined the business, applied for and was allotted 500 £1 shares for cash, towards which he paid £200, leaving a balance to be brought in later by arrangement. Subsequently Mrs. Rodwell, Mr. Clayton’s daughter, and the son Mr. H. Clayton applied for a further 600 shares and paid for them out of profits previously allotted to them by Mr. A. Clayton. The share capital, according to the balance-sheet, amounted to 4,462 £1 shares, made up as follows : Alfred Clayton, £3,631, Frank Selwood, £501 (£200 paid); A. E. Clayton, 340; Kate Rodwell, 260; a total of 4,762. The difference of £300 was liable to be called up and was due from Frank Selwood. Early in 1921- during the slump – there had been heavy losses, but with the inception of the company and from its commencement there certainly was a distinct improvement. The first trading account in the company’s experience, the seven months up to March, 1922, showed a profit of £119. 19s. on a turnover of £11,834. Under the circumstances, that was regarded as quite satisfactory and very encouraging. In the meantime Mr. Selwood had been appointed manager at £8 a week plus commission of profits. In the half-year ended September, 1922, there was a profit of £178. 5s. 7d. In the six months following that there was another decided improvement. On a trading of £17,677 a profit of £622. 5s. 8d. was made. The next half-year (ended September, 1923) profit was reduced to £344. 13s. on a turnover of £13,644, or a profit on the year of £966. As the credit to the profit and loss account stood at over £1,000, it was decided to pay a first (and final) dividend of 5 per cent., which absorbed £223. 2s. The following half-year trade increased to £17,084, but profits were only the small sum of £97 6s. 8d. Between March and September, 1924, great difficulty was experienced in getting sufficient work to do – principally because the class of work done by the firm was MOSTLY FOR WINTER WEAR All percentages of costs increased. Leather was dearer, the amount for six months up to September, 1924, being £884. 2s. 2d. The company was probably caught by the rapid rise in the cost of materials, for which they could not advance the selling price. Mr. Hodge regarded that as a tragedy. The result of the last period had been disastrous. A carefully prepared trade account covering the seven months from September, 1924, to May 1st. 1925, disclosed a loss of £1,988. 0s. 7d. on a turnover of about £16,000. Mr. Selwood’s appointment was concluded in March last. Unfortunately, Mr. Selwood had been away for reasons of health for some time, and thus he could not be present to assist them to understand the heavy trading loss of the past year. They were explained by the audited accounts, which he could supplement by giving figures as to the cost of materials, which would show that it was quite easy to lose money at such a great rate. In that period leather cost 64 per cent., labour nearly 32 per cent., and the gross profit was only slightly under 5 per cent., which was inadequate to meet standing charges and depreciations. The bank was secured by Mr. Clayton’s guarantee. Mr. Clayton’s loan of £1,055 was composed of an original item of £540 left in on loan when the company was formed. He was entitled to a director’s salary of £6 a week, but frequently he did not take it, leaving it to be added to his account. By agreement with the company, he was entitled to £100 per year as rent for the factory, and that sum had also been added to his loan account. Thus the sum had reached the total of £1,055. 3s. 6d. Mr. Clayton loaned the amount to the company to help the company, and he contrived to live on the rents from cottages and sundry items outside the business. In regard to the assets, the plant had been put down at what was considered a fair selling value at a forced realisation. Stock was in good condition and included a large quantity of finished boots. Mr. Clayton’s reason for calling the creditors together was that he could not meet all the claims in their proper order as they became due. Mr. Clayton wished to continue, and the company’s solicitor, Mr. Mason, would make a proposal on the company’s behalf. In reply to questions by Mr. L. G. Roberts, Mr. Hodge said that there were the two directors getting £6 and £8, and a sum of £50 was paid to Mr. Selwood as commission on profits. No interest was charged on Mr. Clayton’s loan. Mr C. Head (Messrs. England Smith and Co., Rushden) asked whether Mr. J. Tompkins (present manager) was prepared to continue indefinitely. Mr. Hodge said that Mr. Tompkins would promise to continue for six months to see if it were possible to improve matters. Mr. Mason, for the company, offered 15s. in the £ in three equal instalments of 5s. in four, eight, and twelve months, suggesting that a small committee be appointed to satisfy the creditors as to security of the last instalment. Mr. Clayton had five houses in Essex-road subject to a substantial mortgage. The Chairman said that that would mean about £3,800 to pay £5,427. He wondered whether the firm could carry on. Mr. Lipscombe (salesman) said he believed the firm’s goods could be sold. Mr. Tompkins, who was asked into the meeting, said he would carry on for six months. If the circumstances were favourable at the end of that time, he would continue. The Chairman said he thought that 2s. 6d. in the £ should be paid in two months, 2s. 6d. in four months, and the remainder as offered. This was agreed to, and a committee was appointed of Messrs. Roberts, Head, T. Hector, Hicks, and the chairman. In case the company could not keep going and went into voluntary liquidation, Mr. Palmer and Mr. Hodge were to be asked to act as liquidators. Thanks to the chairman concluded the meeting. |
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