ONE of the North-East's biggest names plunged into administration last night as new figures revealed an alarming increase in regional business failures.

DP Furniture Express, the Sunderland-based company formerly known as Durham Pine, said the deteriorating retail market, caused by consumers curbing their spending, had left it unable to fund its 31 stores across the country.

Only last year, DP had pledged to become one of the largest furniture retailers in the country, with large-scale plans to float on the stock exchange and fund up to 15 new stores.

Instead, the group has become the latest high-profile casualty of the region's economic ills, which have seen a 25 per cent increase in firms going bust since last year.

Figures from Pricewaterhouse-Coopers (PwC) showed that the number of companies becoming insolvent in the region had risen by 25 per cent since last year - an indication of the economic downturn. A total of 81 companies entered insolvency between April and June this year, a high level compared with previous years.

Receiverships also increased, while the number of administrations dropped between 2004 and 2005.

DP has been taken over by administrators PwC with the fate of its 200 workers hanging in the balance.

Durham Pine, founded by chief executive John Marshall 21 years ago, has 31 outlets mainly in the North of England and Scotland. It also has franchise stores which are not affected and are trading as normal.

Mr Marshall said: "It is with great regret that, after 21 years running a successful retail operation, we have found it necessary for part of the group to go into administration."

DP has an annual turnover of about £30m. Its demise comes less than a month after fellow operator Furnitureland went into administration.

Administrators at PwC said they hoped trading would continue while seeking a buyer for the business.

Joint administrator Ian Green said the administrators would be looking at outstanding orders as "a matter of urgency".

Customers who are concerned about orders are advised to contact their local store.

DP stores are still open and selling stock which is on the shop floor, but the company is not taking orders.