A thriving tyre and exhaust company is planning to move from Yarm High Street, leaving premises free for redevelopment.

Derek Campbell, who runs the tyre depot, has made an application to Stockton Borough Council to move his business to Preston Farm Industrial Estate.

If the application is successful, the premises would be free for redevelopment by owner Javed Majid.

Mr Campbell said: "The landlord is hoping to develop this site to enhance the High Street if we leave, but I don't know what he is planning. He has told me the residents of Yarm will be very happy with his plans."

Mr Majid, of Maher Entertainments, bought the site in the late 1990s.

In 2000, he sparked controversy when he announced plans to build a three-storey wine bar and 32-seater restaurant on the site.

Residents reacted angrily to the proposal and Mr Majid later backed down saying he did not want to antagonise the people of Yarm.

It later emerged that the site may have historical importance and that remains of medieval houses could lie underneath the depot and yard.

It is thought this could cause problems for any future work on the site.

Mr Campbell said he was sorry to be leaving Yarm but was looking forward to attracting business to his new premises.

He said: "We are surrendering our lease early but Mr Majid has been very helpful in finding new premises on the Preston Farm estate."