AN eleventh hour offer by a mystery backer has saved the marriage guidance service Relate's operation in the North.

As reported in yesterday's edition of the Northern Echo, a series of financial problems looked to have left the organisation's trustees with no option but to close the North-East centre.

Covering an area including Sunderland, Middlesbrough, County Durham and North Yorkshire, but excluding Northumberland, it had been established for less than a year.

If it had closed yesterday, as planned, the loss of five shops and 150 jobs, including those of counsellors, volunteers and support staff, would have resulted.

But after a meeting in the morning with a mystery backer, an offer to save the organisation was made.

Last night, Harold Heller, chairman of Relate North-East, expressed his delight at the support from what he described as "a major trust fund".

"They obviously felt that we were too important to be lost," he said.

"It's a huge vote of confidence for Relate."

The decision to back the organisation's recovery plan was taken following ten days of negotiations, at which Relate provided full details of how it aimed to progress.

It has admitted that, from the outset, it underestimated the costs of amalgamating several branches to establish the North-East centre.

After that, a series of blows including low revenue from its shops, a poor response to a freephone number, and the withdrawal of a grant from Redcar and Cleveland Borough Council, meant it could not meet its £250,000 annual costs.

Last night, the council defended its decision to withdraw funding, saying its support was "minimal".

Yesterday's offer means that none of Relate's premises in the region will have to close.

The freephone line will continue to operate, as will the youth services run by the charity.

Mr Heller said: "We are going to be renewing our services to put ourselves on a firmer financial footing. We need to get more clients through the door, more contracts with health and social services, and to streamline our headquarters.

"We will continue to apply for grants and approach grant aiders to tell them what we can do. Certainly, we have got to operate more efficiently."

Relate can be contacted on freephone 0800 980 5907.