NEIGHBOURS have told how they launched a desperate search of a smoke-logged building to find a furniture store boss, not knowing he was lying outside badly burned.

Nigel Peacey died in the early hours of Saturday morning after suffering almost 90 per cent burns in the blaze at the West Auckland factory on Friday evening.

It is believed the 58-year-old grandfather had been using an angle grinder to cut a container in his workshop, at Priory Pine, when the contents ignited.

Ronnie Savage, 34, of Copeland Road, said he saw Mr Peacey stagger from the workshop covered in flames. He said: "I couldn't believe what I had seen at first because he went into the shop.

"I ran over and he was coming back out so I shouted at him to get on the floor and took my top off to start putting him out. Another man came and I told him to take his jacket off and help me.''

Mr Savage did not recognise the man as Mr Peacey, so he ran into the smoke-filled building with friend Gareth Moss to look for him.

Mr Savage said: "He was covered in flames, we did not recognise him. We thought Nigel must still be inside and all we could think about was finding him.''

Meanwhile, Michael and Lynne Radford, of Station Road, sat with Mr Peacey until paramedics arrived.

Mrs Radford said: "He was very badly burned but he was so calm. He recognised me as 'lady over the road' and said thank you and how kind everyone had been for helping him.

"He also kept asking about Pat, the lady who works there, to make sure she was all right.''

Mr Moss said: "Thinking about it now we should not have gone in but we just wanted to find Nigel.

"He was a lovely bloke. He would do anything for anyone. It didn't matter how busy he was he would drop everything and help.''

Mr Peacey, a father of two, was a devoted family man who lived with his wife Linda, at The Grove, Hartlepool.

Neighbours were stunned by his death.

Vic Topping, 58, said: "I couldn't believe it when I found out. He was a smashing bloke.

"He will be sadly missed. He was a good spirit of the community and would go out of his way for people. He never had a nasty word to say about anyone.''

Mr Topping's wife Pat said: "He was a lovely man. I don't know how his family will ever get over this.''

Firefighters and police were still at the scene on Saturday morning as investigations into the fire got under way.

A police spokesman said that the incident would be investigated by the health and safety executive but it was not being treated as suspicious.