Staff at the Dirk Scheringa Museum for Realistic Art in the village of Spanbroek were shocked to find the 400 works from the museum’s permanent collection packed into removal vans and carried off by bailiffs on Tuesday evening.

On Monday Mr Scheringa’s DSB Bank was declared bankrupt, and he will also apply for bankruptcy this week for the bank’s parent company DSB Beheer. The ABN Amro bank has taken possession of the art collection as security against a 32-million euro loan for the construction of a vast new museum in the nearby village of Opmeer.

The collection assembled by Dirk Scheringa and his wife Baukje has an estimated value of 40 million euros. It centres on work by Dutch magic realists such as Carel Willink and Dick Ket, but also includes paintings by international artists ranging from René Magritte to Lucian Freud and Marlene Dumas. The collection of more than 400 works was far too large for its present home, and was due to move into the new building next year.

The museum which opened in 1997 attracts 60,000 visitors a year. Although stripped of its permanent collection, the museum remains open with a guest exhibition of paintings by Jan van Tongeren.

Critics complained that Mr Scheringa paid too much for inferior works by well-known artists. They said his collection had no vision. It was nice for a wide audience which appreciated innovative work, but was artistically superficial.

Culture Minister Ronald Plasterk, however, says it is a good collection and thinks it would be a pity if the museum is forced to close. "It is an important tourist attraction for that part of the province of North Holland."

Both museum director Sander Uitdenbogaard and the Culture Minister have said they hope the collection will not be split up and will remain accessible to the public.