A FIRM has sealed its commitment to a County Durham town by renewing the lease on its premises and starting a major refurbishment scheme.

Coats Crafts UK, on the Lingfield Estate in Darlington, is to undergo a dramatic change.

The building was constructed just after the Second World War for Patons and Baldwins Ltd, costing £7.5m, as a showpiece factory with imposing marble foyer, bronze doors, sweeping staircases and art deco fittings.

Although the business started out as a wool spinning factory, Patons and Baldwins merged with J&P Coats, which ran the cotton side of the business, and in 1991 it became a sales and distribution firm.

The company distributes crafts, haberdashery and handknitted products and employs 90 people.

Because the present business is smaller, Coats has negotiated a deal with the landlords of the building, Marchday Group, to take over 13,000sq ft of offices and 74,000sq ft of warehouse at the premises.

Brian Notarianni, logistics and operations manager at Coats Crafts, said: "There was a lot of discussion about other options, but we took the view that we wanted to stay in the town and support the town.

"We have taken a smaller office and warehouse within the building, but it is being refurbished to a much higher standard and we have leased it for around 12 years."

Marchday Group will restore the main entrance as part of the refurbishment and has also commissioned a woven tapestry to represent the history of the site.

Coats expects to move into its new area by August.