THE former chairman of a Darlington company has issued a warning to developers considering working with the borough council on a new out-of-town development.

Derek Walter was chairman of Indescon, a company with 400 employees, until it closed in the 1990s.

The company had hoped to develop a site off Yarm Road, in Darlington, with the borough council.

The development would have included a supermarket, hotel, leisure facilities and a multi-screen cinema.

However,the council pulled out in 1988 when the it failed to resolve financial differences with the company.

Mr Walter was so angered by the decision that he held a sit-in at the town hall.

He later partly blamed the collapse of his company, which was also involved in developments in the London Dockland, on the loss of the Darlington deal.

Following Darlington council's appeal last week for developers to come forward for the new Morton Palms development, close to the Yarm Road site, Mr Walter has issued a stark warning.

He said: "Indescon were over-trustworthy and over-confident and I say that as the chairman responsible.

"I hope the council can give some assurance that if and when it finds a suitable developer, they will not be treated as we, a local company, were."

However, a spokesman for Darlington council reassured possible developers and emphasised that the council had changed considerably since the problems with Indescon.

He said: "The problems with Indescon were 14 years ago, before the current council was in office.

"There were different executives and officers involved. We can assure any developers interested in the Morton Palms site that we are working with One NorthEast to create a successful business park on the outskirts of Darlington.