A FAMILY haulage firm which started in 1924 distributing coal by horse and cart has gone into administration with the loss of 30 jobs.

Dunns Shildon Limited has been a major employer in the County Durham town for more than 80 years.

Administrators Tait Walker last night confirmed it had been called in to Dunns, and that it had made 30 of the 34 staff redundant.

Dunns is believed to have been owed money by one of its major customers, car components firm Vickers Pressings Tolwood Automotive (VPTA), based in nearby Newton Aycliffe, which went into administration last month.

VPTA administrators KPMG last night confirmed that Dunns was a creditor, but declined to say how much money was owed.

However, Tait Walker said money owed to Dunns had led to its demise.

Gordon Goldie, from Tait Walker, said: "One of their major customers went into administration and that has left a major hole in the cash flow at Dunns, leaving the directors with no alternative but to call us in.

"Unfortunately, we have had to make most of the employees redundant."

Shildon's Town Mayor Stuart Bird said: "This has sent a shockwave through the town because Dunns is an integral part of the Shildon community. I really feel for the Dunn family and all of their employees.

"Everybody I have spoken to has expressed their sadness by what has happened.''

One resident, who did not wish to be named, said: "It is so sad. The Dunn family has done a lot for Shildon and it is awful that something like this has happened."

The company also showed its support to the recently-built railway museum in the town.

Councillor John Robinson, Sedgefield Borough Council's Lead Member for Culture and Recreation said: "We were saddened at the news of Dunns calling in the administrator.

"Locomotion: the National Museum at Shildon would not have been possible had it not been for the co-operation of the Dunn brothers allowing access through their premises for all construction vehicles.

"The help and assistance from the company over the past three years reflects how important Shildon is to the Dunn family."

It is believed a small number of staff have been kept on to help wind up the business, and the assets will now be sold to make as much money as possible to pay off creditors.

* Administrators of car parts firm VPTA last night confirmed they had managed to sell part of the business.

The company went into administration last month with 14 redundancies.

However, administrators from KPMG are continuing talks with up to 20 potential buyers.

A spokeswoman confirmed last night that subsidiary company Nufast, which is based in Walsall, in the Midlands, has been sold as a going concern to a supplier from Taiwan