THE HUSBAND and wife directors of tool firms which failed with debts of more than £452,000 have been disqualified from acting as company directors.

Craig and Sandra Johnson, both 42, of Park Avenue, Great Harwood, were directors of Assured Diamond Ltd based at Manor Place, in Dill Hall Lane, Church, near Accrington.

Mr Johnson was also the director of the Tool Supply Company Ltd, based at the same address.

The Tool Supply Company was placed into voluntary liquidation in September 2001 with debts of £64,908, and Assured Diamond just 15 months later, in December 2002, with debts of £386,845.

An order disqualifying them from acting as company directors or in any way, whether directly or indirectly, being concerned in or taking part in the promotion, formation, or management of a company, has now been made at Manchester Crown Court.

Mr Johnson was disqualified for seven years, and Mrs Johnson for five years.

In relation to Assured Diamond, the court found that they had failed to ensure the company filed statutory returns with HM Customs and Excise since July 31, 2001, and the company had been in arrears with its liability to the Crown since that date.

They continued to trade while insolvent.

The court heard their debts increased by at least £32,187 at a time they ought to have been aware the firm would be unable to pay its liabilities.

A spokesman for the Insolvency Service said: "The Insolvency Service has responsibility for the investigation of the conduct of directors of failed companies and for the disqualification of those who are considered to be unfit to be involved in the management of companies in the future."