The Earl of Wessex has been named as a debtor to a building company that has gone into receivership.

C J Sims collapsed after running into difficulties with a number of contracts, including renovating Prince Edward's house, Bagshot Park.

A friend of the earl said the company had presented him with a bill for about 30% more than the agreed amount of £1.8m "out of the blue".

The friend said the earl had paid the £1.8m, less a small amount to cover teething troubles, after the work was finished in August last year.

He said: "An offer was made to pay more but his proposed settlement was rejected. They could not come to an agreement. It is regrettable, but he is not the only debtor."

Receiver Keith Goodman, of accountants Leonard Curtis, said: "It is true that he (the Earl of Wessex) owes a substantial amount of money in respect of which the company was negotiating with him prior to the receivership."

C J Sims - which employs 90 staff - has been operating since 1946 and recently received the Royal warrant.

The firm carried out a number of contracts for the royal family, including work at Buckingham Palace, the royal mews and work on fire damage at Windsor Castle.

Mr Goodman added that he doubted whether the company, which is still trading, would survive in its current form.

He said he was hoping to transfer some contracts to new builders: "Somebody might come along and want the name because it is a very well established name and the right to continue on various contracts. We are hoping that is what will happen.