EMPLOYEES of a North-East bakery chain have been told their jobs are safe, but they may have to wait a month before returning to work after a blaze destroyed their headquarters.

Nearly 700 people who work for Peter's Cathedral Bakery will still be paid.

Yesterday, more than 70 bakery outlets across the region were closed while fires still burned at the Dragonville Industrial Estate, in Durham.

Firefighters were last night still trying to get the fires in the factory and offices under control so investigators could establish how it started.

Ian Doherty, of Durham and Darlington Fire and Rescue Service, said plastic pallets and cooking oil had probably fuelled the fire along with a series of gas fires that started once the blaze had taken hold.

He said the brigade had to wait almost five hours for the mains supply to be turned off so the fires could be extinguished in case it caused a major explosion.

Fifty people were evacuated when fire broke out at 4.30pm on Sunday causing huge plumes of black smoke that could be seen 20 miles away.

Managing director Richard Knowles said: "Thankfully, all employees were safely evacuated prior to the fire fully taking hold.

"This devastating blow to the business comes at a period during which the company is undergoing an extensive re-branding and refurbishment programme."

Allied Bakers Union spokesman Pat Paterson moved to reassure workers and customers of the bakers, which has been in Durham since 1966, that stores across the region would be open for business again soon.

He said: "We have premises in Peterlee that will be up and running in about four weeks, so hopefully everybody will be re-employed.

"The management and all the rest of the team are working like hell to get the place up and running again, so I would like to say to all our customers to stick with us because we will be back."

In December, the company was forced to suspend production after a fire gutted the firm's dispatch area.