TWO branches of the Co-op have saved their liquor licences after taking tough in-store action to prevent sales of alcohol to people under 18.

The North Eastern Co-operative's stores in Middle Street, Blackhall, and Green Street, Seaham, were due to face court proceedings after they were caught selling alcohol on three occasions to customers under 18, in a police-supervised operation last year.

Yesterday, it was revealed the action had been dropped after a compromise had been reached between the company, the police authority and licensing justices.

The two shops were among stores targeted, and some have already faced court proceedings and been stripped of their liquor licences.

A police spokesman confirmed that the two Co-op outlets had won a reprieve.

He said both stores had introduced procedural systems that had been endorsed by trading standards officers.

He said that following the operation, the Co-op had launched an investigation, which resulted in a number of staff being disciplined, and licensees at both stores being replaced.

He said: "We have withdrawn the revocation proceedings after striking a compromise agreement which has been approved by the magistrates.''

At the North Eastern Co-op's headquarters, in Gateshead, a spokeswoman said: "We take breaches of sales of alcohol and cigarettes to the under-aged extremely seriously and deeply regret that these incidents happened.

"Once they came to light, we took immediate disciplinary action at the two stores and terminated our existing procedures before coming up with a range of improvements.

"We have co-operated with the police and kept them advised of our improved procedures.''

She said the measures included the introduction of a training course.

Volunteer members of staff will also be visiting all the company's branches to carry out spot-checks to ensure that employees selling alcohol or cigarettes question anyone who they believe to be underage.