The 16-year-old, who cannot be named for legal reasons, entered Bells Store in Hebburn and asked Thailand-born Urai Reed to serve him alcohol, South Tyneside Youth Court heard.

When Mrs Reed refused, the boy racially abused the shop-owner then pulled out half a snooker queue from his jacket and threatened to kill her and smash up her car.

The court was told how the 38-year-old shopkeeper "was left extremely shaken" after the verbal assault.

Today Mrs Reed, who co-owns the shop with 38-year-old husband Alan Reed, told how she feared for her life.

She said: "I was terrified when he threatened me, he said he would kill me. I feared for my life.

"It has really affected me. Now we are very careful about who comes into the shop."

The court was told the boy, who has an alcohol problem, was already banned from Bells for theft.

Michael Bunch, prosecuting, said: "The defendant entered the shop and asked for alcohol, but he was refused.

"He then banged his hands on the counter and shouted at Mrs Reed 'speak English'.

"He repeatedly shouted racist remarks then said he would kill her."

Mr Bunch told magistrates how the teenage thug pulled out half a snooker queue while abusing the shopkeeper and left the store, saying he would smash up Mrs Reed's car.

Police arrived minutes later and arrested the boy before any damage was done to the vehicle.

The teenager, from Hebburn, admitted possessing an offensive weapon and was found guilty of racially aggravated fear of violence after a trial last month.

But despite being warned he faced jail, magistrates this week told the boy he has one last chance to turn his life around.

He was sentenced to a 12-month community order and must complete 40 hours' unpaid work, with a two-month curfew order.

Chairman of the Bench, Gordon Aslett, told him: "The easiest option to us, and one which would have been fully justified, is to send you to custody.

"However, we are minded to go with the other option."