A LOSING INDUSTRY

Evening Post, Volume CVIII, Issue 151, 23 December 1929, Page 13

A LOSING INDUSTRY

WANGANUI WOOLLEN- MILLS

Wauganui Woollen Mills as a going concern is under option of sale for £55,000, but the name of the prospective purchasers has not yet been made public. A meeting of business men was held at Wanganui on Thursday, -when-the proposal was made public. The meeting was convened by Mr. T. Warnoek with the object of obtaining local opinion as to keeping the industry going. Mr. E. P. Sealey, manager, National Bank, Wanganui, outlined the financial position of the company in its relations to the bank. The balance-sheet at 30th Juno showed a working loss of £9822. The- bank then required the directors to furnish proposals for a further guarantee of more capital, and was prepared to carry on until the next balance. From fortnightly returns since 30th June, it appeared that the mills were holding their own. But the position, had now beeu complicated by withdrawal of a guarantor. Mr. Sealey reported that tbo general manager of the bank had intimated that the bank was prepared to free the mill buildings, plant, and land from the debenture conditional on £25,000 being raised to reduce overdraft, To cover the balance of the overdraft it would require a joint and several to bo taken on the liquid assets, such as yarns and so forth, for £20,000. The margin of all assets over the bank overdraft amounted to £80,489. Mr. Robert Lilburn explained that unless the company provides what is wanted the bank will insist on the directors signing an option. "We know this option is a very bad bargain for the shareholders, but wo have no alternative. Whatever we do must bo done immediately. AVo require a £10,000 guarantee for the bank to carry on until the end of February." The directors wet a committee appointed by the meeting, and subsequently reported that the committee was satisfied there was nothing to do but sign the option, which was to be taken up by the end of January. •In Juno Messrs. Macky, Logan, Caldwell and Co., made a proposal to take over the mills.