CUSTOMERS who rented their television from the Ryedale electrical goods chain Hill & Jackson, which went into liquidation last month, will now have a new contract - with a shop on the outskirts of York.

DRS Television in New Lane, Huntington, was today in the process of buying the television rental agreements from the company.

Dave Smith, owner of DRS Television, said: "More than 200 people who feared they might be without cover, can now feel relieved.

"Obviously, we are going to draw up new contracts but the terms will remain unchanged.

"We are hoping to set up payment facilities through local post offices although we will run the service from Huntington."

The deal means that there should be no more loose ends for Peter Richardson, a former British Rail engineer, who was so impressed as a 20-year-long customer of Hill & Jackson, that he bought its interests at auction and reformed it as Hill & Jackson Phoenix Electrical Ltd.

Mr Richardson also took on 13 of the 18 staff made redundant at Hill & Jackson's premises in Malton, Pickering and Kirkbymoorside.

They are now working at the new organisation's head office at Thornton Road Industrial Estate, where sales and distribution, servicing, repairs and contracting also takes place; and at new offices in Pickering and Kirkbymoorside, near to the old branches.

Mr Richardson said he was investigating leases on other premises. "We hope to expand to the point where we can take on 28 people - the number that Hill & Jackson employed at its peak three or four years ago. "This has been a firm with wonderful traditions of service which should not be lost and none of this was the fault of staff."

Meanwhile, all three of the old premises were put up for sale by agents acting for liquidators Redman Nichols of Driffield, which "as a matter of policy" was not prepared to speak to the Press.

Updated: 11:44 Monday, April 19, 2004