A NEW Renault dealership is opening in Ryedale next month, on the site where one closed earlier this year with debts of more than £140,000 and the loss of eight jobs.

Riverside Eastern, which already has a joint franchise with Renault and Mitsubishi in Seamer, Scarborough, opens Riverside Renault in Welham Road, Norton, on April 3.

The news comes as a relief to owners of new Renault cars in Ryedale, who discovered that the doors of Barker-Smith, the long-established business, had closed in January.

Now Riverside Eastern has stepped into the breach, taken over the lease of the premises, and hopes to employ some of the former Barker-Smith staff. "We cannot say how many we will be taking on at this stage," said Mike Hogan, Renault sales manager at Seamer, where the administration of the new Welham Road operation will be centred.

Barker-Smith's closure was blamed by its directors partly on the takeover of Renault Leeds by Reg Vardy Plc in July 2004. The resulting exodus of all management and staff had a knock-on effect for Barker Smith.

A directors' report presented to liquidators Begbies Traynor of Leeds stated: "Renault had no facility to pay the dealership bonus and warranty payments. Payments were made through Reg Vardy Plc, which again made collecting payments for warranties and bonuses due extremely challenging in this period of flux."

Renault Financial Services arranged the financing for used, demo and courtesy cars, but put a freeze on funding from December 19, 2005, making it unlikely that the business could continue, especially as it was above its overdraft limit. The new dealership on the site will offer full servicing, sales and parts facilities at Norton.

Mr Hogan said: "People who are factory trained will be operating in the workshop.

"All warranties will be recognised and we will offer Motability facilities too. We will also welcome any commercial inquiries for repairs or replacement of vans."

There will be a showroom for four or five new models and a used car park for about 30 vehicles.

The prospect of Renault continuing on the site has been welcomed by a former mayor of Malton.

Martin Dales, who was twice mayor in the 1980s, said: "I had a new Renault car and with the closure of Barker-Smith I had only two alternatives for warranty repairs - either Dixons in York or Riverside in Seamer, both of which were relatively far away. I won't be alone in my delight."

Updated: 10:44 Friday, March 17, 2006