ARSONISTS who targeted a derelict bingo hall caused thousands of pounds worth of damage to neighbouring businesses.

The Supercigs store, in Stockton High Street, was the worst hit, as boxes of cigarettes were destroyed by the water used to tackle the fire in the early hours of yesterday.

Forty firefighters tackled the fire at its height as it spread through the three-storey building, which was a popular cinema in its heyday.

A fire brigade spokesman said: "It was a serious fire which caused severe damage. It is being treated as suspicious.

"People have been gaining access and it has been used by down and outs."

Cheryl Pickering, manageress of Supercigs, arrived at work to find the shop swimming in water.

She said: "I couldn't believe my eyes when I got here this morning. The place was soaked and it has damaged thousands of pounds worth of stock. I hope they do something about the building and pull it down."

Vincent Gourley, regional manager for Nobles Amusements, said: "There was a lot of water in the building, but there was very little smoke damage. We got the call in the early hours and when we got here the fire brigade was still tackling the blaze.

"Staff have been working through the night to get the place sorted out and, hopefully, we won't have lost too many customers."

The owners of the former Top Rank Bingo Hall cleared the rear of the property of rubble before attempting to secure the building.

Jonathan Marsh, of Northern County Leisure, said: "We have inspected the building and it is structurally sound but, ultimately, we will have to demolish it.

"This is the second time in two-and-a-half years that the building has been targeted and the fire brigade did an excellent job preventing further damage."

The old building was hit by fire in November 2002 when the firefighters were on strike. Three teenagers were convicted of the attack on the building, which has been empty for several years.

Last year, Stockton Borough Council approved plans to transform the building into three units for pub or restaurant use and a central outdoor mall.