A COMPANY which operated an internet-based hotel booking service has gone into administration with the business being bought out by another travel firm.

Five people working for Darlington-based Bedsearcher, which has offices on the Nestfield Industrial Estate, in the town, will lose their jobs as a result of the move.

But the new owners of the business, Discover Travel and Tours, said it hoped to supply more bookings to hotels, guest houses and bed and breakfasts based in the North- East who are registered with Bedsearcher.

Bedsearcher was set up in 2002 by Gill Chapple and Jim Mann. The company won a series of awards for its accommodation booking service and after expanding quickly had hoped to achieve annual sales of £40m.

However, earlier this month administrators were appointed to manage the financial affairs of its parent company Central Leisure UK, which traded as Bedsearcher.

Charles Brook, of joint administrators Begbies Traynor, said: “The company has ceased to trade, but the business itself has not shut down, it has been saved, having been bought by a third party independent of the original owners.”

Mr Brook said Bedsearcher had been operating in a very difficult, competitive environment and had been unable to generate enough profit.

He said the company had been effectively insolvent with its major creditor being the Inland Revenue.

Worcester-based Discover Travel and Tours, which sells holidays in the UK, Ireland, France and Australia, to holidaymakers from overseas, has now taken over Bedsearcher’s assets, including its website.

Its managing director Andrew Grieve said it hoped to deliver more business to hotels, guest houses and bed and breakfasts registered with bedsearcher using its “substantial”

international client base.

Mr Grieve, who was raised in Newcastle, said: “This does not preserve jobs in the long term in Darlington, but it does preserve the good work done by Jim Mann and his team in setting up the website and the business.

“It is a good product and a good website which has good recognition.

“There are also a significant number of hotels and other accommodation in the North- East which are affiliated with the website and we can now deliver more business to them.”