|The Rushden Echo, 21st May 1926
Messrs. Robinson & Sons - Bankruptcy
FAILURE OF RUSHDEN FIRM
JOINT LIQUIDATORS FOR MESSRS. ROBINSON AND SONS
RECORDS OF THE COMPANY
Mr. H.C. Palmer (Messrs. A.C. Palmer and Co.) and Mr. L.G. Roberts (Messrs. F. Roberts & Co.) have been appointed joint liquidators of Messrs. T. Robinson and Sons, shoe manufacturers, Gordon-street, Rushden, who have gone into voluntary liquidation.
The company was registered on Nov. 22nd 1917. The nominal capital is £5,000 in £1 shares, all issued. To the date of the last annual return (Jan. 18th 1925) £3,200 had been paid up in cash and £1,800 was considered as paid. The 1,800 shares, credited as fully paid up, were allotted in December, 1919, as follows : In satisfaction of directors’ salaries and bonuses, Thomas, Fred, and Sydney Robinson, 500 each, 1,500 ; in settlement of loan from R.C. Cross, 64, Roberts-street, Rushden, 100 ; and in satisfaction of bonus to Ernest Robinson, 10, Church-street, Rushden (voted for services rendered to the company), 200. At the date of the above return there were no mortgages or charges outstanding, but on March 30th 1925, a mortgage on the freehold factory in Gordon-street, Rushden, with plant, machinery, etc., was created to secure all money due or to become due from the company to the National Provincial Bank, Ltd.
The shareholders at Jan. 18th 1925, were : Thomas Robinson, 1,500 ; Sydney Robinson, 1,500 ; Fred Robinson, !,500 ; Richard C. Cross, 100 ; and Ernest Robinson, 400.
The creditors’ meeting will be held on June 4th.
The Rushden Echo, 11th July, 1926
RUSHDEN SHOE FIRM’S FAILURE
MEETING OF CREDITORS OF MESSRS. T. ROBINSON & SONS, LTD.
YEARLY REDUCTION OF SALES
A meeting of creditors of Messrs. T. Robinson and Sons (Rushden) Ltd., in voluntary liquidation, was held at the Queen Victoria Hotel, Rushden on Friday last. Mr. H. Claude Palmer, F.C.A. (joint liquidator with Mr. L. G. Roberts, Rushden, absent on holiday) presided, supported by Mr. C. W. Wind, solicitor to the Company. There was a small attendance of creditors.
The creditors for sums over £10 were as follow :-
The statement of affairs showed the following :-
Cash at bank, 15/0; cash in hand, £2/18/11; sundry debtors (less provision for realisation £234/6/11), £1842/14/1; stock-in-trade (less provision for realisation £244/0/8), £488/1/3; lasts, knives and patterns (less provision for realisation £41/13/6), £41/13/6; office furniture estimated to produce £14/7/6; total, £2,390/10/3; less preferential creditors, £15/17/10; leaving £2,374/12/5. The
Were partly secured bank overdraft £2607/5/8, less estimated value of security £2,078/16/6, or £528/9/2 to rank; trade and sundry £2,444/11/0, loans £728/8/11; creditors for rates and wages deducted contra, £15/17/10. There was a deficiency as regards creditors of £1,326/16/8, a deficiency as regards shareholders of £5,000, a total of £6,326/16/8.
In his report Mr. Palmer said that the bank held as security on the overdraft, a mortgage on the freehold factory and the whole of the machinery and plant, fixed and loose. The asset as it was taken over by the company was valued at £1,750, and had been depreciated then to £1,230 and since to £1,064.18.2. It was
A MODERN FACTORY
and practically equal to new, and for the purpose of the security it was estimated to produce at least £1,600. With fittings, etc., it originally cost considerably over £2,500. The machinery was estimated to produce £478.16.8. The loan accounts showed that the £728/8/11 had been advanced by the directors as follow : Mr. Frederick Robinson, £79/18/6 (including interest); Mr. Thomas Robinson, £344/7/7 (including interest £89/7/7); Mr. Charles Robinson (not a director), £304/2/10 (including interest) and advanced to the Company as recently as December 17th, 1925. In his general remarks Mr. Palmer said that the company was incorporated on November 22, 1917, with a nominal capital of £5,000 of £1 each for the purpose of continuing the successful business of boot and shoe manufacturing previously carried on by T. Robinson and Sons. The subscribers to the Articles of Association were Thomas Robinson, Sidney Robinson, and Frederick Robinson, who became the three directors, Mr. T. Robinson being Chairman. Each of the three directors were allotted £1,000 to be paid in cash, and the business, with the premises, plant, and stock-in-trade were purchased for £3,000, all liabilities to be discharged by the vendors. The Company took over from October 22, 1917. The first trading account was prepared on October 22, 1918. The sales for the year were £32,038, the profit being £4,962, or 15.3 per cent. on the turnover. The sum of £1,600 was placed to reserve against Excess Profits Tax. The directors received £350 each, leaving a credit balance on the profit and loss account of £171. the next period, ending October, 1919, showed sales £32,341, gross profits £7,426, being 22.9 per cent. After providing £450 each for the directors and £2,500 to reserve for excess profits, the net credit balance was £2,292.15.5, which really represented 7 per cent. on sales. At the meeting at which those accounts were submitted it was decided to raise the salaries of each of the directors to £600 in respect of the preceding year and also to award to each of them a bonus of £300, in the form of shares. There was also a
CREDITOR TAKEN OVER
from the old firm, Mr. R. C. Cross, who was allotted £100. Mr. Ernest Robinson was allotted 400 £1 shares (£200 being a gift for services rendered). In 1923 two shares were transferred to Mr. A. King and the share capital was represented as follows : Mr. T. Robinson 1,500, Mr. S. Robinson 1,498, Mr. F. Robinson 1,500, Mr. E. Robinson 400, Mr. R. C. Cross 100, and Mr. King 2. The period ending October, 1920, showed sales £27,614, a gross profit of £2,760, or 9.8 per cent. After providing £1,800 for directors’ salaries and other charges were met there was a net loss of £666, reducing the credit balance on the profit and loss account to £247. The next period, ending October, 1921, showed sales £21,113, a gross profit of £3,024, a percentage of 14.3. After £1,800 for directors’ salaries and other charges had been made, the net profit was £113/10/5. Dividends of 5 per cent. were paid to Mr. E. Robinson on the £200 actually paid by him and on the £100 converted into shares by Mr. R. C. Cross. The credit balance on the profit and loss account then stood at £613/18/9, and that happened to be the last year in which an actual credit balance appeared in that account. The 1922 trading showed sales £14,988, gross profit £852 (5.6 per cent), a net loss after charges (including £1,800 to directors) had been met, of £1,814. October 1923, showed sales £13,922, gross profit £580 (4.1 per cent.) salaries to directors reduced to £960, giving a net loss of £1,339 and increasing the company’s deficiency to £2,392. The 1924 balance sheet showed sales £15, 629, gross profit £240 (1.5 per cent.), directors’ salaries reduced to £750 for the three, the net loss for the period being £1,523.5.2. It was agreed that £215 unpaid directors’ fees be cancelled. The sum of £300 placed to reserve was written back and minor adjustments were made, and the net loss for that year was £3,278. October 1925, disclosed sales £10,524, a gross profit of £450 (4.2 per cent.), £802 to directors, net loss £1,148, total deficiency £4,426.17.4. The short period of six and a half months from Oct., 1925, to the date of liquidation showed sales £5,116, gross profit £123, directors’ salaries £411/16/0, the net loss being £1,173, increasing the net deficiency to £5,595. Speaking generally, Mr. Palmer said, the Company had had no real success after the first two years and that at the end of the fourth year capital was still in debt. The four years 1922-26 inclusive showed a
PROGRESSIVE REDUCTION OF SALES
which was relieved slightly in 1924. There were altogether inadequate gross profits and an increasing deficiency. Efforts were made to get new capital into the concern and finally it was decided that the Company must go into liquidation. An extra-ordinary meeting of shareholders was held, Mr. Roberts, Mr. C. W. Wing and himself attending. The position was fully discussed and a scheme was suggested of a reduction of capital and of calling a private meeting of creditors asking them to accept a composition of approximately 15/0 in the £, but that was found impracticable, and the only course was voluntary liquidation.
Mr. Stevens, one of the creditors present, asked whether the Company made any offer.
Mr. Palmer said there was no offer. The directors were tired of the whole business and had decided not to go on.
Mr. Stevens : They have done no good since they had to compete in the open market.
A creditor asked whether Mr. Wing had anything to report.
Mr. Wing said there was no report, except to state what were the powers of the creditors. He read extracts from the Act relating to the point.
Mr. J. Harris said he thought the price estimated to be realised on the sale of the factory was low, and he thought the same of the machinery.
Mr. Palmer said he had purposely put the figure at a safe one. He personally hoped that a higher sum would be reached. He had had too much knowledge of the forced sale of second-hand machinery to put that high.
Mr. Harris further stated that he was given to understand three weeks ago that the bank were more than covered, but the balance-sheet showed that that was not the fact.
Mr. Palmer said that there were other securities held by the bank co-lateral with those of the Company.
Several creditors criticised that on the point that it was not a fair representation to have been given to the creditors recently. Creditors would not benefit because the bank had ample security since part of it was from outside. It meant that some of the bank’s share would be a further drain on realisation
Mr. Harris said that he had been told that the creditors might get 20s. in the £.
Mr. Palmer said he hoped it would be over 10/-.
It was decided that Mr. Roberts and Mr. Palmer continue with the liquidation with the assistance of Messrs. Harris Bros. Rushden, Messrs. J.S.J. Stevens and Son, Leicester, and Messrs. A.E. Fox and Co., Burton Latimer.
Transcribed by Gill Hollis