An Alexandra cherry orchard and house put up for auction in a mortagee sale failed to sell yesterday.
BDO Spicers was appointed the receiver on November 17.
The property is owned by Michael Bennie and his son Peter Bennie, operating under the trade name Bennie and Son.
The orchard was passed in at $750,000 and the adjacent house and lifestyle block reached just over $300,000.
Auctioneer Graeme Bezett said further negotiations with an interested party were being held.
Mr Bennie said the company had been struggling because of an unpaid insurance claim stemming from equipment that had been bought without instructions in 2001.
The equipment was to monitor the amount of spray applied to cherries to prevent rot and mould.
Because Mr Bennie was unfamiliar with the method required to clean the equipment, excessive chemicals were applied to the fruit, which began browning off in transit to market.
Mr Bennie is claiming $540,000 plus four years' interest. The manufacturer is in liquidation and there is now no-one to sue.
