POLICE are appealing for witnesses to a suspected arson attack on a Shildon taxi company.

A gang of five teenagers was seen in the area shortly before two vehicles were set alight, at about 11.30pm on Monday.

The family business, Street Cars, runs two vehicles both of which were attacked outside the owner's home in Holly Hill, in the Sunnydale area of the town.

One car, a Citroen estate, was destroyed. The second, a Ford Escort, was badly damaged in the attack which has put the company out of action for several days.

It is the second time in less than a week that the business has been attacked by vandals.

In the early hours of Sunday four windows and the sunroof of the Ford Escort were smashed by hooligans.

Shildon town councillor Councillor Simon Brown, who drives for the company, said the owner, Morris Carp, had worked hard to build the business in the past two years, and the two attacks had caused great inconvenience and expense.

He said: "The arson attack was extremely frightening. The cars were parked up briefly outside a house where three children were sleeping.

"It could have been horrific. If the fuel tanks had blown up people could have been seriously injured.

"It has still been dreadful. One car needs extensive repairs and the other is a write-off. A new one will have to be bought soon so business is not lost over the busy Christmas and New Year period. This could have been crippling to a small, local business and we all hope the culprits can be found to prevent this sort of thing happening again."

Other taxi companies have had to be called in to honour existing bookings with Street Cars.

Mr Carp assures customers that he will have two cars on the road in the next few days.

Detective Sergeant Dave Storey said: "Five youths were seen around the vehicles pouring something on to them. They were described as about 16 years old and all wore sports clothes and caps. We want to speak to anyone who saw them or knows anything about the incident."

Witnesses or anyone with information are asked to contact Detective Constable Nev Price on (01325) 314401.