THE heartbroken owner of an East Lancashire nursery school, who claims she has lost £100,000 from her bank accounts, wept today as she said: "I'm sorry my staff have lost their jobs - but I have lost my life."

Elaine Eastham spoke in the wake of the closure of Elaine's Child Care Centre in Brockhall Village, Ribble Valley, where more than a dozen staff lost their jobs and a month's wages this week.

Mrs Eastham said she was forced to close the pre-school at short notice when her banks refused to extend her credit on Monday afternoon.

Her solicitor is pursuing a claim on her behalf against another person in relation to the alleged loss of money.

Speaking from Elaine's School's Out and Holiday Club in Accrington Road, Whalley, where parents met to discuss the future of the centre last night, Mrs Eastham said: "I feel really sorry for the staff and if I had the money to give them I would.

"They've worked very hard for me but equally as they find themselves with no money, so do I.

"I'm sorry they've lost their jobs but I have lost my life. I have spent nine years building this business up and it's been hard work and a lot of responsibility. Now I've got nothing.

"My reputation has been wrecked and this person has taken my integrity. I'm gutted and I can't believe this has happened to me."

Mrs Eastham began the Whalley centre in 1990 and after quickly developing a waiting list took the lease on the property in Brockhall Village in 1995. Together, the two centres catered for up to 79 children aged from three months.

In November, 1997, she says she realised money was missing from her accounts.

She said: "Everything I worked for was stolen and I have fought desperately over the last 18 months to try to save my business but unfortunately for myself, my staff and the children in my care the legal wheels have not turned fast enough. I now stand to lose everything.

"My love for the children in my care has always been paramount and I have tried my utmost to help parents return to work with peace of mind. I spent two hours on Monday night trying to ring around and let people know the nursery was to shut but got through to about five.

"Everyone wanted to talk in depth about what had gone on and it was just an impossible thing to do."

Mrs Eastham is hoping to keep the Whalley centre going for a couple of months but confirmed that unless someone buys the business it will close too.

She went on: "I am deeply sorry for the obvious distress caused to my clients and their families but I am an innocent victim here.

"My deepest wish is that somebody reading this will wave a magic wand and offer to buy me out and then there will be some continuity of care for the children."

Grandparent Susan Richards, who lives in Langho, gave her support to Mrs Eastham.

She said: "My grandson Thomas went to the Brockhall Village centre and now goes to School's Out in Whalley. He loves it and he's going to be in a real state if it has to close.

"I'm absolutely devastated for Elaine. She is not a bad person and has always run her centres for the kids. I don't know where Thomas will go now and there will be a lot of Ribble Valley children and families upset by this."

Ribble Valley businessman and owner of Brockhall Village Gerald Hitman failed in an attempted to take over the nursery and reopen it with the existing staff yesterday.

Police are aware of the allegations that money has been misappropriated.

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