MORE than 250 workers are to lose their jobs at crisis-hit car retailer South Cleveland Garages, it emerged last night.

The 18-year-old business went into receivership last week following a cash flow crisis which was blamed on thieving former accountant Mary Blair, 55, from Darlington, who was jailed earlier this year.

Last night, receivers at PriceWaterhouseCoopers said that 255 workers - most of the 300-strong workforce - would be made redundant.

All staff were sent home last week when they were told of the receivership and were called back to work yesterday for a meeting, when they were given the bad news.

Craig Livesey, joint administrative receiver, said: "Regrettably, no one has been in a position to purchase the business in its entirety, or a substantial part of the business.

"Given the lack of funds to continue trading the business, redundancies sadly became inevitable.

"We have had a number of parties express an interest in parts of the business and we are currently in discussions."

South Cleveland Garages has seven sites in Middlesbrough, Hartlepool and Darlington.

It was hoped that Doncaster company Stoneacre would take over the £60m turnover business but it pulled out, saying it could not meet the receivers' deadline.