TOP York restaurant Harvilles – the final part of businessman David Hattersley’s former hospitality empire – has closed suddenly with the loss of 20 jobs.

The art deco-themed restaurant in Fossgate was shut down yesterday by owners Chris and Emma Watkins, just a week after their other York business, the Lamb & Lion Inn in High Petergate, also closed.

A spokesman for the couple said they had “reluctantly” decided to shut Harvilles, which opened in spring 2007 and was named Eating Place Of The Year in the York Tourism Awards For Excellence just over a year later, as their business plan depended on the joint offer of food and accommodation.

“Without the Lamb & Lion, which had 12 rooms, the benefits of ‘cross-selling’ to customers disappeared and the figures did not add up,” he said. Chris and Emma were also turned down for a Government-backed loan and were left without the resources to develop Harvilles as a standalone restaurant.

Mr Watkins said: “We’ve spent the last week trying to find a way to make Harvilles work. But the financial aftermath of the Lamb & Lion closure and the current economic climate have combined to scupper our hopes of keeping Harvilles afloat.

“We are truly sorry to have to let go such a talented and hard-working team, and would like to thank them, our customers and suppliers for their support.” He said all Harvilles’ creditors would be paid in full.

Restaurant general manager Martin Wilks said yesterday he was “extremely upset” by the closure, which came as a shock to staff, who were a professional team trying to take the restaurant in the right direction.

He said: “It’s very sad for them and their families.”

He said about 100 people had dined at Harvilles on Saturday night, and 60 to 70 customers were booked in for meals on Mothering Sunday, but would now have to go elsewhere.

Harvilles opened after the de Bretton Hospitality Group had spent £3 million transforming a former carpet warehouse.

Chris and Emma, Mr Hattersley’s daughter, bought it, along with the Lamb & Lion, when de Bretton went into administration last year.

Two other de Bretton businesses, the Guy Fawkes Inn in High Petergate and Marmadukes Hotel in St Peters Grove, were placed on the market by administrators last week for more than £2 million.