Rushden Echo, 6th April 1923, transcribed by Kay Collins
Serious Failure of Rushden Firm
Crippled By a Heavy Trade Debt
Deficiency of £6,766
Under the voluntary liquidation of the Advance Boot Co. Ltd., boot manufacturers, Rushden, the statutory meeting creditors was held on Wednesday week at the offices of the Leicestershire Trade Protection Society. Mr. Brunton (Messrs. Hugh Brown and Son) presided.
Mr. Herbert Simpson, solicitor for the company, explained that the immediate cause of the present position was the failure of Radzanov, Salford, who owed the company over £2,000. A contributory cause was the depreciation of stock.
The statement of affairs presented by the liquidator, Mr. Watson (Messrs. Watson and Meller, accountants, of Leicester), showed unsecured liabilities, £7,080 10s. 10d.; director's loan and salary, £1,225 16s. 6d.; partly secured creditors £3,670 15s. 3d., less value of security £2,100, leaving £1,570 to rank, and making total unsecured liabilities £9,876 7s. 4d. The assets consisted of book debts, £545 15s. 6d.; stock, machinery and plant (per estimate of Mr. Arthur Colin), £2,700; and preferential claims £36 1s. 5d. The net assets totalled £3,109 14s. 1d., showing a deficiency of £6,766 13s. 3d.
Mr. Watson said that Mr. G. H. Clarke, the managing director, originally bought the premises for £475 and sold them to the company two years ago for £1,000; which he received in promissory notes and subsequently handed to a creditor. He therefore lost everything. Bills from Radzanov for £1,251 were also passed to creditors, and were now added to the liabilities.
A resolution to continue the liquidation with Mr. Watson as liquidator was carried. An advisory committee was appointed consisting of Mr. T. F. Birch, J. Green, and Mr Brunton.