A FAMILY-OWNED garage businesses has gone into administration, threatening 42 jobs.

Keith M Watson Ltd, which trades as Watson Ford, called in administrators last week, blaming the economic squeeze for taking its toll on demand for new and second-hand cars.

The Teesside company has showrooms at Saltburn and Brotton, a repair workshop at Skelton and a petrol filling station and shop at Marske.

Administrators Ian Schofield and Willie Duncan, from accountant and business advisor PKF, are helping the company with its finances, and revealed that several inquiries have already been made about buying the business.

Mr Schofield said the staff would remain employed in the short-term, particularly at the company's filling station.

He said: "It is the only petrol station for some distance and we believe it is important it should continue trading as a service to the local community and to maximise returns for creditors."

He said the business had been affected by the slowdown in demand from customers for new and used cars, and this had resulted in cash-flow problems.