CRANBURY - A horse auction company has lost its license, which means owners are prohibited from selling any horses. Camelot Auction House's owners say they can't afford to keep the animals either, which means the horses could be headed to slaughter.

The auction house has been holding weekly auctions for the past 17 years. It purchases and resells horses for profit, many of them saved from slaughter.

The Department of Agriculture is citing a long history of problems with medical and sales records. The agency had been extending Camelot's license weekly as it tried to get the company to comply. But that stopped this week.

The owners say they've been trying to work with the Department of Agriculture and say they'll do whatever else they can, but a letter from the agency says Camelot has not produced accurate and complete information that's been requested.

The owners of Camelot said that if the issue isn't resolved by early next week, some 40 horses will be sent to Canada for slaughter.