AN HISTORIC company which has been in business for more than 70 years has been bought out after going into administration.

East Lancashire Coachbuilders Ltd, based on the Whitebirk Industrial Estate, Blackburn, has been taken over by the Darwen Group Ltd.

The Darwen Group is a newly formed company set up by entrepreneur Roy Stanley, chief executive of electric vehicle manufacturing company The Tanfield Group plc, based in Washington in the North East.

The deal, worth several million pounds, has also seen North West Bus and Coach Repairs, Appleby Street, Blackburn, bought by the same company.

Bosses have said none of the 360 workers employed in the two companies will lose their jobs.

They have also pledged to invest cash in East Lancashire Coachbuilders which will see new technology and products introduced.

John Horn sales director for Darwen Group said: "East Lancashire Coachbuilders had been struggling for 18 months or so, and the staff were obviously concerned about their jobs, we want to allay any fears that their jobs are under threat."

"Under our management and guidance, we believe it can exploit some significant opportunities for organic growth and look forward to a prosperous future.

"Darwen has identified a number of key areas of investment including its infrastructure, new processes, new technologies, new products, and its workforce.

"It is business as usual for now - there are a significant number of orders to be fulfilled.

"Going forward, we have a growth strategy and will begin its execution over the coming months."

The Darwen Group bought East Lancashire Coachbuilders and North West Bus and Coach Repairs after the directors of parent company British City Bus placed the businesses into administration on Friday.

East Lancashire Coachbuilders was formed in 1934 and supplies buses in the UK as well as across Europe and Asia.

It has approximately 5,000 double decker buses in service.

Cathy Rudderforth regional industrial organiser for the Transport and General Workers Union said the union had members at the firm but had not been told about the takeover.

She added: "My understanding was the company was facing financial difficulties and they were seeking new orders in order to alleviate the financial problems."