M.R.S. Reorganization: £34,000 to Receiver A SCHEME for the reorganization of
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M.R.S., Ltd., Liverpool, was outlined before the North-Western Licensing Authority, at Liverpool, on Monday, when Edward Box and Co., Ltd., Lightbody Street, Liverpool, applied for an A licence for 36 vehicles and 35 trailers (330i tons) at present held by Sir Basil E. Mayhew, receiver and manager of M.R.S., Ltd.
Mr. David Karmel, for the applicant, said that up to six months ago, M.R.S., Ltd., who concentrated on heavy haulage, operated 473 tons, but the receiver then felt bound to terminate contracts in respect of 20 vehicles.
Mr. J. Donaldson Hudson, a director of M.R.S., Ltd., and of Edward Box and Co., Ltd., would run the business in future, and Col. Donaldson Hudson was joining the board and would provide capital of £45,000, out of which there would be paid to the receiver, on behalf of M.R.S., Ltd., 33,900 for vehicles, stock and goodwill.
Mr. J. Donaldson Hudson said that most of the share capital of the Box concern was held by M.R.S., and if the application were granted, the latter company would be wound up.
Sir Basil Mayhew declared that there was a business capable of transfer, with an average turnover of £90,H0 a year. The chief reason for the failure of M.R.S., Ltd., was the shortage of working capital, coupled with hire-purchase commitments. In the year ended March 31, 1935, a profit of £13,633 was earned, before charging depreciation, hire-purchase interest, or bank interest. The hearing was adjourned.