A FAMILY-run engineering firm has been compulsorily wound-up by the High Court in London.

The petition to compulsorily wind-up Sapphire Engineering (Bishop Auckland) Ltd was presented by the Inland Revenue, which said that the company owed it unremitted PAYE.

The company, which has its registered office at Northfield Way, Newton Aycliffe, County Durham, was run by directors Harry W Burn, 41, and Lorraine Burn, 42, of Priors Green, Spennymoor, and Harry M Burn, 69, of Moor Farm, Spennymoor.

In 1989, Flagbeau Ltd, which reconditioned engines and was registered to Mr Burn Snr's address at Moor Farm, was also wound-up owing £8,000.

At the time, Mr Burn said the company was forced to close in June 1988 due to a combination of "cash flow problems" and the "general economic climate".

The High Court heard on Wednesday that a petition to wind-up Sapphire Engineering had been advertised in the London Gazette.

Evidence was given by the Inland Revenue that the company was insolvent and unable to pay its debts.

The Burn family declined to comment