FALLING plant sales and increasing costs have been blamed for the failure of Proculture at Knowle Hill, Evesham, which has gone into liquidation owing nearly £1million.

Former sales and marketing manager at Proculture, Derek Jarman said; "The two big killers were labour costs and increased energy costs.

"We had to pay above the national minimum wage and energy costs at £150,000 a year were set to double in the coming season."

Creditors include trade customers estimated to be owed £300,00, inter-company loans to the holding company amount to £500,000 and another £200,000 is taken up by tax and claims by former employees - 30 were made redundant - some of which it was hoped would be settled by Government agencies so that former employees would not lose out.

Mr Jarman said creditors were likely to get 15p in the pound when the liquidators, Janes of Cheltenham, were in a position to settle.

"It would have been even less if the Young Plants business had not been sold to Delamore's at the beginning of August," Mr Jarman said.

Delamore also took over the name of Proculture, the goodwill and the trading business and Knowle Hill Nurseries bought the fully-grown plant business. A condition of the Delamore sale was that Proculture should change its name to Vale Garden Plants Ltd and it was that part of the business that went into liquidation on August 15.

Proculture expanded on the back of a rapidly rising market for plants but three years ago the market levelled out and had since declined, in the case of Pro-Culture by 10 per cent, at the same time as a price squeeze by the supermarkets and ever-increasing costs.

"The bank decided it wanted its money back and there was no way we could continue," Mr Jarman said. "It is a very sad situation."