A FACTORY only yards from Tony Blair's home in County Durham has gone into administration.

Volante Public Transportation Interior Systems Limited, which employs 70 people in Trimdon, said a number of loss-making contracts had caused it to go under.

It is the second business in Trimdon to hit financial difficulties in the past week.

The Northern Echo reported last Friday how canal boat maker Steelcraft, based on the Trimdon Grange Industrial Estate, had gone into liquidation, threatening 30 jobs.

Last night, Graham Wood, regeneration manager of Sedgefield Borough Council, said: "This is another harsh blow for a small community, especially at this time of year."

The Newcastle office of professional services firm Deloitte has been appointed as administrator for Volante, which makes interior panels for buses and trains.

Administrators Ian Brown and Neil Matthews, of Deloitte, said they are aiming to find a buyer to take it on as a going concern.

Mr Brown said: "We have already had a number of expressions of interest in taking over Volante as a going concern, and would expect that more will follow in the next few days.

"Volante is essentially a structural strong business with a range of established customers, and offers good prospects for potential new owners."

Volante, which continues to trade while a buyer is being sought, was forced into administration due to the "combined impact of a number of loss-making contracts".

Mr Blair opened the factory in 1997 and then returned for a visit in 1999 with his wife, Cherie, when the company had an artist in residence on the premises.

In February last year, Volante made about 30 redundancies after an order with a major customer came to an end.

Last week, Steelcraft closed its doors and was in consultation with local business support organisation, the Shildon and Sedgefield Development Agency, in an attempt to save the company.

At the time, Councillor Lucy Hovvels, Mayor of Sedgefield borough, said: "We are a small community and we rely on small local companies like this to help generate income back into the area.

"This is a real blow for this community."