A private North-East ambulance service has been forced into liquidation by the foot-and-mouth crisis.

Medical Response Team (UK) Limited, based at Aycliffe industrial estate in Newton Aycliffe, was made the subject of a compulsory winding up order at Darlington County Court on April 11.

The company, incorporated in 1997, carried out business as a private ambulance service for music and equestrian events.

A spokesman for the company said the foot and mouth crisis two years ago had had a knock-on effect for the business.

He said: "The company had no other choice but to cease trading after being hit by a number of unforeseen circumstances.

"However, there is substantial funds held by financial institutions which the company agree should be frozen for the receiver to distribute."

The company ensured that all 17 staff were re-employed last year and there were no redundancies.

Cancellations of country shows, horse events and other related events due to the restriction of livestock movement had proved to be a huge setback, the spokesman said.

Medical Response Team (UK) was unable to make claims to bodies set up to help people affected by foot and mouth because it was not an industry that had a permanent base in the locations hit by the disease.

Three of the company directors resigned in November last year with former journalist John Merry remaining.

Mr Merry, of Escomb Village, Bishop Auckland also helps run County Durham Emergency Volunteers, which is separate from Medical Response Team (UK) Limited and has not been affected by the company closure.

A spokesman for the official receiver confirmed a compulsory winding-up order had been made against Medical Response following a petition by garage firm Holyway Ltd in Newton Aycliffe.

He said a creditors meeting will be held shortly and insolvency practitioners will be appointed to act as liquidators to release the company assets.

The official receiver will investigate the causes of the company's failure.