Local firms angry as Yorkshire Lavender enters liquidation owing over £1m

Yorkshire Lavender was established in 1995 outside Terrington and grew to incorporate a shop, tea room, plant nursery and gardens. Its owners instructed William Duncan (Business Recovery) on August 9 to begin a liquidation process for Yorkshire Lavender Ltd.

A letter sent to creditors and seen by The Yorkshire Post states that on the same day, Yorkshire Lavender Ltd sold its assets to Barnby Holdings Ltd, a company formed in July. Barnby Holdings involves Samuel Goodwill and Emma Waddington, who are directors and shareholders in Yorkshire Lavender.

Local business owners who are among 60 trade and expense creditors collectively owed more than £1m by Yorkshire Lavender today told The Yorkshire Post of their unhappiness at the situation.

Despite the liquidation process formally starting on August 25, the Terrington site on which the business was based is continuing to operate.

Among those owed money are Cosy Cottage Soap, a sustainable soap making company based in Malton. The firm is listed as owing £870.14.

It had produced 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 following day.

“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.”

The Hooting Owl Distillery, in Barmby Moor, is owed £2,419.20 by Yorkshire Lavender after creating a bespoke lavender gin for them.

Director Dominic M’Benga said: “It takes a long time - even the bottles that we manufacture for them take 40 minutes each - and it costs money.

“We work on relatively small margins so when you do get a hit, you get hit pretty hard.”

Malton-based Inprint Colour are owed over £4,500. Sales manager Andrew Dunce said his company had been chasing the unpaid money for months but received no response.

“The thing that upsets us most is the fact that we’ve worked with them for 16 years. We’re a local business - a family-run firm just like they are. We’ve been let down massively.”

A spokesperson for 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 did not respond to request for comment.