WILLIAMSON Motors has acquired a dealership from struggling car retailer South Cleveland Garages, securing 17 jobs at the Hartlepool site.

Darlington-based Williamson Motors has taken over the Peugeot franchise from the retailer, which went into receivership earlier this month with the loss of 255 jobs.

The Hartlepool franchise will reopen next weekend and will be Williamson's third dealership.

Simon Williamson, managing director of the retailer, which sponsors Darlington's football stadium and celebrated its 65th anniversary this year, said: "I have spoken with all the staff and, happily, we are able to take them all on, which is great news.

"This is a very exciting development for the company."

The dealership will move into temporary premises in Casebourne Road, Hartlepool, after Reg Vardy, which owns the current Peugeot site, decided to move its new Citroen franchise.

But Mr Williamson said the company was still looking for a site in the town to build premises.

He said: "This is a short-term move, but we are already looking for possible sites for a new £1m site."

South Cleveland Garages administrators PriceWaterhouseCoopers confirmed it had transferred the Peugeot lease to Williamson. A PriceWaterhouseCoopers' spokeswoman said the fate of about 35 remaining workers depended on potential buyers coming forward.

Sunderland-based car dealer Reg Vardy opens a Citroen dealership in Stockton today.

The group acquired the Citroen franchise, which also includes dealerships in Hartlepool and Stockton, from South Cleveland Garages earlier this week.