Ethel Austin fails to attract buyer, 1,000 lose their jobs

Fashion retailer Ethel Austin has been forced to close its doors after failing to attract a buyer.

Earlier this month, the Liverpool-based discount clothing retailer, together with its sister company Au Naturale, entered administration for the second time in two years.

The group was bought out of administration in 2008 by Elaine McPherson – former chief executive and joint owner of MK One.

However, Ethel Austin, which was established 76 years ago, has faced severe pressure from cheaper budget chains such as Primark and as a result has now been forced to close 114 stores and 1,048 staff have lost their jobs.

Administrators for the group, MCR, said: “In light of the current economic climate these stores identified for closure did not attract a purchaser. Regrettably, as a result of their current financial performance, these stores will shortly cease to trade.”

Ethel Austin is not the only retailer to have suffered amid the recession. Childrenswear, Adams, was placed into administration for the second time in a year last month, while D2 Jeans, formerly part of Sir Tom Hunter’s empire, entered administration just after Christmas.

The iconic department store, Woolworths, collapsed under a mountain of debt at the end of 2008, while other big names that went bust shortly after included furniture retailer MFI, music and games retailer, Zavvi, The Officer’s Club and Whittard of Chelsea.

These are worrying times for the High Street after research by the British Property Federation Retail Summit recently found that some British towns are turning into ghost towns as shoppers continue to avoid the High Street, in favour of online shopping.

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