Car dealership Holiways has gone into administration and most of the company's 81 staff are set to be made redundant.
The new and used car dealer - which had sites in Newton Aycliffe and Bishop Auckland - had suffered a drop in trade as a result of reduced consumer spending.
And this is despite the company selling its Durham and Hartlepool dealerships in recent weeks.
KPMG have been appointed administrators .
"It is unsurprising that during a recession, a relatively rural car retailer has struggled. Despite a restructure, which saw Holiways sell two dealerships in recent weeks, the siginificant losses incurred by the business through the summer means it simply couldn't continue to trade."
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The Gung-Ho! Seriously Fun 5k takes place today (Saturday 2nd July) at Newcastle Racecourse, Gosforth in aid of charity.
Veterans, cadets, dignitaries and serving Northumberland Fusiliers have paid tribute to those killed at the Battle of the Somme
Clear spells. Showers. Brisk winds. Sunday looks like the better day