A CAR dealership accused of abandoning its workforce has taken on a new franchise complete with staff.

Lookers Toyota, which axed the entire staff of its Northallerton garage last month, has taken over the Massingberd Volkswagen dealership, directly opposite the Toyota site in Darlington Road.

Lookers confirmed it would be retaining all 40 of the current Massingberd employees.

Both garages opened for business under the Lookers name on Monday but a spokesman for Lookers plc confirmed the Toyota business would close in the near future.

He said: "We recognise our responsibilities to our employees and we are trying to find jobs for the staff from the Toyota garage. Obviously it is a sensitive situation and in an ideal world we would be able to keep all the employees on."

He confirmed that Lookers had been planning to buy the Massingberd site before the Toyota closure was announced.

"Negotiations with Massingberd have been going on for some time, and the two events aren't unconnected," he said. "But Lookers are delighted to be able to continue trading in Northallerton. We have a very loyal customer base and are very keen to continue to serve them."

Lookers staff last month condemned their employers' decision.

"My fellow workmates and I have been very let down by Lookers" said one. "We are facing unemployment, without getting any redundancy money or even proper notice of termination of contract."

He described reports of the company hoping to open a new business nearby as "adding insult to injury".

The Massingberd garage, which opened in Northallerton in 1982, will remain a Volkswagen dealership. It is being sold along with garages in Knaresborough, Harrogate and Otley by director Mike Massingberd.

Mr Massingberd said: "I am now in my sixties and have two daughters who have other interests to fulfil. I've been in the business for 41 years and now feel that it's time to move on.

"I would like to thank all my loyal employees, customers and suppliers who have helped to build a local business that we can all be very proud of and I wish them every success under the new ownership. It has been our priority to ensure that they are all looked after by the new owners."