A Business With The Highest Reputation - Wartime Success Not Continued
A meeting of creditors of W. A. Patenall and Sons, Ltd., Rushden, in voluntary liquidation, was held at the Queen Victoria Hotel on Tuesday afternoon, Mr. H. Hodge, F.S.A.A., of Kettering, the liquidator, presiding.
Mr. Hodge read a list of 58 creditors, each for more than £10, the total amount owing to them being £2,909 5s. 2d. They were as follow : Bale Engineering Company, Leeds, £60; British United Shoe Machinery Company, £16; Brown and Sons, Liverpool, £95; T. N. F. H. Briggs, Leicester, £25; J. Bland, Stanwick, £10 12s. 10d.; E. Catling, Rushden, £60; Coker and Sons, Northampton, £11; Croft and Nichols, Rushden, £27; Cox and Son, Rushden, £25; Central Tanneries, Warrington, £24; H. W. Chapman, Wellingborough, £22; (dishonoured cheque held for £6 15s. 4d.); P. Collins & Co., Rushden, £36; E.A. Chettle & Co., Rushden, £109; J.S. Clipson, Rushden, £23; J. Collier & Co., Ltd., Northampton, £14; J. Carter and Sons, Ltd., London, £11; T. H. and J. Daniels, Ltd., Stroud, £13; C. B. Excel and Co., Swansea, £19; Frecknall & Co., Ltd., Northampton, £217; A. Foster, Kettering, £40; (hold dishonoured cheque for £14 3s. 1d.); Goodliffe Manufacturing Co., Ltd., Northampton, £24; Gimson Shoe Machinery Co., Ltd., Leicester, £39; Gilpin Bros., Birmingham, £86; F. Hawkes, Rushden, £14; Hodge and Baxter, Kettering, £30; A. E. Hodge, Northampton, £30; H. Ingle and Sons, Ltd., Leicester, £159; H. Knowles and Son Ltd., Liverpool, £37; L.M.S. Railway Company, Northampton, £18; Morton and Son, Leicester, £70; G.L. Michel and Son, Northampton, £66; H.J. Odell and Co., Higham Ferrers, £15; J. E. Pearse & Co., Kettering, £147; P. C. Patenall, £211; H. A. Patenall, £211; Phipps and Son, Ltd., Northampton £11; Pfister Vogel Leather Co., Ltd., Northampton, £18 ; Radburne and Bennett, Ltd., Rushden, £84 ; G. P. Roxby, £10 ; Ruspring Leather Co., Ltd., Northampton, £24 ; Standard Food and Produce Co., Ltd., £34 ; Sutton & Co., (Leicester), Ltd., £172 ; A. Sanders, Rushden, £17 ; Sowter and Buckingham, £15 ; Trasler Bros., Ltd., Northampton, £17 ; C. R. Tozer, Kettering, £26 ; Victoria Leather Company, Higham Ferrers, £85 ; White and Son, Ltd., £169 ; G. Whatmough, Ltd., £13 ; Wood Malvenon and Co., Glasgow, £101 ; Wolfhil Spinning Co. Ltd. Belfast, £14; Whatmore and Co., Manchester, £159 (hold dishonoured bills for £87); L. Woods, Rushden, £15; C. F. Webster, Ltd., Leeds, £46; J. Whitehead, Leicester, £13; W. J. Wilson, Ltd., London, £17; Alfred Williams, Portsmouth, £143.
Mr. Hodge said there were cash creditors for £422 6s. 8d. The sums due to Mr. P. Patenall and Mr. H. Patenall were money left to them by their father. A business, A. Williams, Portsmouth, belonged to Mr. P. and Mr. H. Patenall, having been established in 1920 by their father, who then purchased the premises. In 1927, when the company found itself short of money, it obtained as much as it could from the little business in Portsmouth. Money was sent in anticipation of goods for cash, but the
Goods Were Never Sent.
There were 109 creditors in all. The National Provincial Bank, Rushden, were secured creditors for an overdraft on current account and interest of £1,672 7s. (d. At the end of June last the amount owing to the bank was just over £1,500. There had not been any opportunity or endeavour to reduce that sum. The bank held as security a mortgage deed dated May 26th, 1925, conveying the freehold factory in North-street and the fixed and movable machinery and equipment on the premises. At the time of Mr. N. Crick’s death the building was valued at £1,150, and at that figure it was taken over by Mr. W. A. Patenall. When the company was formed in 1918 it was put in at £1,000. Since then improvements were made to the engine-house, adding £252 to the cost. The bank also held a collateral security in a charge on the Portsmouth shop. which had never been the property of the company. During the last fortnight of the company’s working he (Mr. Hodge) had paid the wages of the factory employees, as for some time he had been accumulating cash for the creditors, to the total of £310 16s. 6d. The book debts were good, had, and indifferent, but mainly good.
Briefly stating the history of the business, Mr. Hodge said that Mr. Percy Charles Patenall had 2,301 shares, Mr. Hedley A. Patenall 2,201, Mrs. W. A. Patenall, Mrs. B. West (sister of two first named) 200 shares. Mr. Percy Patenall was managing director. The firm had started 40 years ago as Messrs. Crick and Patenall, and for years before the war they were quietly successful. In 1900 the executors of Mr. Crick received £1,293 to which they were entitled. During the war substantial profits were made and the firm paid their due proportion of taxes and excess profits duty. The largest profit they made was in 1920, when it was £58,506. During the next two years the company began to feel the effects of the slump and the aftermath of wartime conditions. For the year ended 1922 they lost £1,600, aggravated by bad debts. In 1923, on a turnover of £23,968, they lost (including bad debts of £492) £1,243 15s. 3d., which greatly worried the late Mr. Patenall. After that bad debts were practically avoided. In the next year, on an increased turnover, the company showed a small profit. Unfortunately Mr. W. A. Patenall died early in 1925, and that was a
Great Blow To The Business,
inasmuch as the conduct of affairs devolved upon the two sons, who had not had a sufficiently long and all-round experience. Mr. P. Patenall and Mr. H. Patenall did all in their power to conduct the business on the right lines. The year in which the father died showed a great loss, but in the following year there was a distinct improvement. During 1927 they lost a further £1,025 15s. on a turnover of £19,081 19s. 3d. The two directors had drawn annually only £330, rather less that £3 10s. a week each. A balance-sheet for the first half of 1928 disclosed a further loss of £805 19s. 0½d., and by this time only £768 of the £4,907 originally subscribed remained to credit of the balance-sheet. It was decided to cease ordering further goods and to take steps to wind up the affairs of the company. The business was never a big one, but it had held the highest reputation. While the two brothers were single they drew only 30s. a week from the business, increasing that to £3 10s. when they married.
In reply to questions, Mr. Hodge said that the profit in 1924 was £4 12s 2d. and the loss in 1925 was £1,810, and in 1926 it was £278 12s 9d. the shop at Portsmouth was bought to sell finished boots. There were always proper accounts between the shop and the factory, and the shop had never made profits at the expense of the factory. Two other shops were rented. It had been decided that the late Mr. Patenall should have £500 a year, but, as the business needed money, he drew only £5 a week. There was about £25 owing for a traveller’s salary and expenses.
Mr. Hodge told one creditor that he was afraid there was no chance of getting repayment of excess profits duty.
On the motion of Mr. H. I. Shaw (Messrs. Frecknall), seconded by Mr. Sutton (Sutton & Co.) it was decided to appoint Mr. Hodge and Mr. Claude Palmer joint liquidators, and a committee of inspection was elected comprising Mr. Shaw, Mr. H. Ingle, of Rushden, Mr. L. G. Roberts, of Rushden (representing a number of creditors), Mr. G. G. Cullop (White and Sons, Leeds), and Mr. F. Nash (Parsons, Kettering).
The statement of affairs at the date of liquidation was given as follows:-
Liabilities Unsecured creditors, trade accounts £3,103 2s 2d., loans £422 6s 8d. ; secured creditor, National Provincial Bank, Ltd., overdraft and interest to date £1,672 7s 9d, estimated value of securities as per contra £1,853 5s., estimated surplus to contra £180 17s 3d. ; contingent liability on bills discounted, £117 8s 9d. ; expected to rank for dividend, nil ; preferential creditor for rates, etc. (deducted contra), £48 4s.
The assets included : Cash in hand, £310 16s 6d. ; book debts, estimated to produce £958 7s 7d. ; stock in trade, estimated to realise £649 11s 1d. ; fixed and loose plant and machinery and factory, estimated to realise £1,853 5s. ; estimated surplus from securities in the hands of secured creditor, £180 17s 3d. ; a total of £2,099 12s 5d. ; les preferential creditors for rent and rates, £48 4s. ; net total, £2,051 8s 5d.
There was a deficiency as regards creditors of £1,474 0s 5d., and a deficiency as regards shareholders of £4,907 ; totalling £6,381 0s 5d.