The closure of Consett's Northern Recording studio at Delves Lane will leave a void that will be hard to fill.

The co-operative behind the venture, which has nurtured scores of aspiring bands and musicians, could not persuade funding groups such as The Arts Council to provide the money needed to buy new premises and equipment.

Rather than struggle on providing what they thought would be a poorer service, the four co-operative members decided to close the doors of the Old Miners Hall.

The move has shocked and saddened musicians who have rehearsed, recorded or been helped by the team.

The studio provided affordable and accessible facilities in an area that still suffers from deprivation 25 years after the closure of the steelworks.

Performers included pub singers, club acts, singer-songwriters, folk artists and teenage grunge groups, and all benefited from Northern Recording's support, advice and expertise.

The studio also taught thousands of children and introduced them to music-making through its pioneering and widely-acclaimed project.

Steve Percival, a member of the Durham band Sugarwood, which recorded albums at the studio -one with US producer Kim Fowley -said the closure was a big shock.

He said: "They were a big help. It was a unique place. It did not matter if you were a 17-year-old guitarist, a club act or a big name, they would help you.

"We brought a Zulu choir over from Durban and they recorded an album in two days for free."

Mr Percival, who recently returned to the studio as a volunteer youth worker when youngsters from Brandon Youth Club recorded a song about their town, said the studio would be a big miss for local musicians.

Patrick Conroy, Durham County Council's director of culture and leisure, said: "We are sad to see them stop trading as a co-operative, but we can understand their reasons.

"We have always been very pleased with Northern Recording and its broader remit for contemporary music throughout the county, and have provided revenue funding for its activities.''

He said the council had supported the co-operative's applications for funding, adding: "I think the case was very solidly made and we were disappointed they were not successful.

"Northern Recording had a good track record of serious delivery and a sound revenue base."

Paul Green said closure had been a hard decision for him and fellow co-operative members Mary Kearney, whose late husband, John, was a founder member, Peter Boyle and Ged Boyle.

He said: "We set out to provide top quality facilities that were affordable and accessible if anyone was minded to pick up an instrument and play, sing or play the drums. We would remove the barriers of money and they could concentrate on being creative."

Mr Green said that with about £1.5m, a studio could have been built, and that the existing building was restricting the growth of the co-operative and it could not meet demand for its services.

He said: "If you genuinely want to change people's lives and create a grassroots regeneration, it costs money. You cannot do it on a few hundred pounds and people's best wishes.''

* The Stanley Blues Festival is still due to go ahead on Saturday, August 6.