EDUCATION bosses are struggling to find alternative transport for schoolchildren after a bus company announced it is to pull out of a County Durham town.

Go North East has blamed the deteriorating condition of its depot in North Bondgate, Bishop Auckland, for its decision to leave the town, which was announced on Thursday afternoon.

It is believed the depot will make way for a multi-million pound shopping development, which could attract big retail names to the town.

The company is responsible for 17 school transport contracts in the area, which will now have to be put out to tender by Durham County Council.

The council has until April 7 to make alternative arrangements.

Bosses confirmed that they had given the council three months' notice and assured members of the public that bus services would not be affected.

They also vowed that job losses would be kept to a minimum, with the majority of the 80 staff either being offered the opportunity to move to the company's Chester-le-Street depot, or to business rivals Arriva, which is also taking over most of its Bishop Auckland services.

Commercial director Martin Harris said the decision to close was made following three months of meetings with staff and union officials to discuss the future of operations in Bishop Auckland.

He said alternative locations had been considered within the town but in the end it was decided the best option would be to close.

He said: "We are trying to keep job losses down to the absolute minimum. We have to consult with people and look at alternative jobs either within the company or with Arriva.

"We only need to give one month's notice to the county council for the school contracts, but we have given three months to give them as much time as we can to find someone else.''

A spokesperson for the county council confirmed it had been told of Go North East's decision and was now in the process of putting the contracts out to tender.