Receivers have revealed that an agricultural company which went bust as a victim of the slump in farming owed £298,230 to the bank.

Stock and machinery belonging to Peter White, of Elslack, near Skipton, has been sold at auction and the land and buildings are up for sale.

Accountants Leeds-based Ernst & Young, who are acting as administrative receiver, say an area at the rear of the two-and-a-half acre site has outline planning permission for rural workshop units.

Peter White, who set up the company selling large agricultural vehicles, recently branched out into selling cycles.

Mr White said: "It's all happened in recent months since the latest scare over sheep and lambs. It's hitting everyone in the trade, not just us. It's just died."

He said most of the staff - ten in all - had found alternative employment but a couple had stayed on until the auction.

An Ernst & Young spokesman said: "We have recently accepted offers for both the buildings and development land. The amount due to the bank at the date of our appointment was £298,320 plus interest and accruing charges. At present we do not estimate the bank will be repaid in full."

The company was set up in September 1986 and traded as a distributor of agricultural machinery and spares.

He said trading had continued until December 22 last year and the stock and machinery and spares was sold at auction on January 26.

A meeting of creditors was arranged for today at the Hotel Metropole, King Street, Leeds.

Farmers have cut back on investment on machinery as a result of the crisis in the industry, first sparked by the mad cow disease scare and more recently with fears over the safety of meat from sheep and lambs.

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