A WELL-known Ryedale firm has gone into liquidation owing thousands of pounds to other local businesses.

Yorkshire Lavender, based near Terrington, appointed a liquidator last month owing more than £1million.

However, the attraction, which includes a tea room and shop, is now trading under Lavender World.

A letter sent to creditors says that in July, Yorkshire Lavender Ltd sold its assets to Barnby Holdings Ltd. Samuel Goodwill and Emma Waddington are named as directors of both companies.

Local business owners who are among 60 trade and expense creditors collectively owed more than £1m by Yorkshire Lavender said they felt angry and let down.

Cosy Cottage Soap, a sustainable soap making company based in Malton is listed as being owed £870.14 after producing a batch of 800 soaps for Yorkshire Lavender.

Clara Challoner Walker, who runs Cosy Cottage Soaps, said she was told by Yorkshire Lavender that her invoice would be paid the day after she was told it was going into liquidation.

“I heard absolutely nothing after that,” she said.

She said her husband went to Yorkshire Lavender to collect their stock, but found on arrival that only 40 soaps of the initial 800 were left.

“I issued a credit note for the 40 which took the bill from around £1,000 down to around £800. But then it was complete silence again.”

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The company also owes £13,413 to Ryedale District Council, £85,000 to HMRC VAT and £65,000 to HMRC PAYE.

Christie Shephard, secretary of Dales of Malton, which is owed £5,445, said it was extremely disappointing.

“Everyone has struggled over the last couple of years and are slowly clawing their way back so this is not helpful.

“As a company, our aim has always been to keep pushing money around so everyone can keep their supplies going rather than going under.

“It is extremely disappointing that this has happened and that we have received no response from the company.”

A spokesperson for liquidators William Duncan said: “Prior to the liquidation the company agreed a sale of the business and assets of the company to a connected company in a deal that meant all employees retained their jobs. The liquidator will scrutinise this transaction in the course of the liquidation.”

The spokesperson added: “We are unable to make any predictions on the likely return to ordinary creditors at the moment as investigations have just commenced.”

Yorkshire Lavender have not replied to the Gazette & Herald when asked for a response.

However, the website Lavender World, said: “We are a close family business currently in our second generation.

“We are based on our natural lavender farm in the North Yorkshire countryside and as a dedicated family team we run LavenderWorld, which has grown out of Yorkshire Lavender, the popular local attraction set up by our father.

“We have always understood the importance of quality, sustainability, environmental awareness and products that are naturally beautiful.

“Our passion for these products has prompted us to bring the items we find that meet this criteria to our website, so we can share them with you.

“We may be growing in size however our local values remain and that is why every customer experience is important to us. We want you to not only receive the best products, but the best service too.”

In 1993, Nigel Goodwill purchased the land now occupied by Yorkshire Lavender as an investment after his wife Lynne died from breast cancer.

The company became a family project for Mr Goodwill and his children Sam and Emma Jane.