STRICKEN Malcolm Engineering Company (MEC) was yesterday forced to stop trading after efforts to find a buyer to rescue it from administration failed.

The Darlington firm, which has traded in the town for more than 40 years, confirmed that it was winding up after its two remaining major customers withdrew their orders, making the search for a new owner "unachievable".

MEC, which at one point employed about 70 people, has consistently reduced its workforce since falling into administration early last month, and yesterday said its remaining employees - thought to be about 30 people - would also be laid off in the coming weeks. Nine staff will be kept on until the firm's backlog of work is cleared, and prepare the company's assets and site, in Banks Road, Darlington, for sale.

Family-run MEC called in administrator Geoffrey Martin and Co early last month after falling into financial difficulties.

Hopes had been high that a buyer could be found for the company, which was traded as a going concern, after 13 potential owners expressed an interest.

Last night, it was revealed that interest had come to nothing.

John Twizell, from Leedsbased Geoffrey Martin and Co, said: "Every effort has been made to find a buyer for the business as a going concern.

"However, during this tough period, the two main clients of the company felt that, while it was not their preferred option, it was ultimately in their best interests to seek alternative suppliers and the resulting loss of business has made the sale unachievable.

"Nine staff will be retained to complete the balance of the work in progress and to prepare the plant, machinery and the freehold property for sale to maximise the return for staff and creditors."

Unions have complained over the past weeks about how staff at the factory had been made redundant by the administrators without consultation or notice.

Yesterday, one former worker, who asked not to be named, said: "It's no great surprise the plant is now going to shut.

"We've been preparing ourselves for this for a few weeks, even though they were saying they were hopeful of finding a buyer.

"After they started laying people off without warning we feared the worst, and after they lost the two remaining companies, the writing was on the wall.

"It's sad what has become of what was once a successful company."