Barratt & Barratt - Bankruptcy

THE  FAILURE  AT  RUSHDEN IN THE BOOT AND SHOE TRADE

BARRATT AND BARRATT

  At the Northampton Bankruptcy Court on Tuesday, before Dr. Faulkner (the Registrar), Thomas Wilson Barratt and Stewart James Hall Barratt, of Lawton-road, Rushden, boot and shoe manufacturers, came up for public examination. Their statement of affairs showed:             

	£	s.	d.
Gross liability	3,434	5	9
Estimated to rank	2,658	3	1
Available assets	642	14	3
Deficiency	£2,015	8	10

The trustee, Mr. W. C. Cattell, Kettering, appeared in person.

T. W. Barratt, answering the Official Receiver, said he commenced business in May 1895, with John Gammage. Each contributed £37, and they had an overdraft at the bank of  £300. S. J. H. Barratt joined in August 1896, contributing £37. Gammage left at Easter, 1897, the brothers paying him £55.

NO  BALANCE-SHEET

was made at the time. They thought the business was then solvent as a going concern. In December, 1897, they got out a balance-sheet, and found they were £500 to the bad; in June, 1898, an accountant got out a balance-sheet, and it showed they were £899  11s  1d. to the bad. At Christmas, 1897, they did not consider that they had lost £500 of creditor’s money, they looked at it as the security at the bank that was gone. The largest creditor, Mr. Cunnington, whom they consulted, persuaded them to go on. They owed him about £700 then, now they owed him about £460 or £470. Since they knew they were insolvent they had incurred a debt with Boston & Son amounting to £210. Debtors never ordered the goods. Boston &Son sent them and insisted on their keeping them; they said the debtors would oblige them if they took the stuff in.

  The Registrar : Credit is cheap in the leather trade?

  Debtor : It is.

S. J. H. Barratt confirmed his brother’s evidence, and the examination was formally adjourned.

Transcribed by Gill Hollis