A letting agent being investigated by police after shutting shop owing thousands of pounds has written to angry landlords saying: "I'm sorry."

Keith Youngs has also applied to go into liquidation, days after claiming his debt-ridden firm would be up and running again.

An investigation by The Argus has discovered the Youngs Owen letting agency faces creditors' claims to the value of about £50,000.

Landlords, tenants and contractors have told how they have been unable to recover rent, deposits or payments from Youngs Owen.

Sussex Police are considering whether to take any action against 28-year-old Mr Youngs, of St John's Road, Hove.

He unexpectedly shut down his office in Western Road, Hove, on Thursday last week.

He has now instructed Sheffield-based insolvency practice Wilson Field to start liquidation proceedings.

Landlords have started receiving letters from Youngs Owen explaining the firm's plight.

A letter sent to landlady Natasha James reads: "It is with great sadness and regret we have to inform you of the liquidation of Youngs Owen Ltd."

After referring all dealings to Wilson Field, the letter ends: "All we can say is we are truly sorry this is the situation but felt this was in everyone's best interest before the problem grew any larger."

The letter Ms James received from the firm yesterday was dated April 4 but the envelope was postmarked April 9.

She said: "I find it amazing that a few days ago he said he was planning to reopen the office but this letter states otherwise."

The Argus continued to receive fresh calls yesterday from Youngs Owen clients across the South-East, pushing the possible tally of claims up to £59,650.

Nadia Gurney-Randall, of north London, said she was owed £3,000 in rents and deposits for two flats she was renting out in Brighton.

She said: "When one of my tenants paid his rent ten days late, Youngs Owen charged him an extra £150. Yet we've all been waiting ages for them to pay us."

Tim Hare, from Wiltshire, is claiming £1,800 in a month's rent and a deposit on a home in Adelaide Crescent he was letting through Youngs Owen.

The Gay Business Association (GBA) is also investigating the firm.

Youngs Owen advertised itself as a gay-friendly firm, offering discounted rates to gay people, and is a GBA member.

Steve Coote, co-ordinator of the GBA, said he had recently received a complaint from a Youngs Owen client about problems being paid money.

Mr Coote said: "We tried phoning the firm but have been unable to get a reply so our complaints procedure has not really got anywhere yet."

Mr Youngs set up his own firm, Youngs Owen, with his sister Yvonne Youngs in January 2002.

She left her post as the firm's accountant earlier this year.

His mobile phone has remained switched off since the first story in The Argus last Wednesday and he has changed his home number, although he has returned to the office in Western Road at least once.

One unhappy client stuck a poster on the office window urging people to report Youngs Owen to Hove police but it has been torn down.

Nick Wilson, of Wilson Field, said they received a letter yesterday from Mr Youngs formally engaging the firm as liquidators.

He said: "We are waiting for a list of creditors and further financial information from Mr Youngs before we can arrange a date and venue for a creditors' meeting."