McPherson emerges as saviour of Au Naturale

Published on Thursday 22 May 2008 22:14

THE budget end of the fashion retail market – currently being ravaged by the slump in high street spending – has found a saviour in a Scottish retail guru.

Elaine McPherson, 47, has emerged as the mystery buyer of 46 Au Naturale stores, acquired from administrators last week.

McPherson, the founder of fashion chain MK One, also came to the rescue of Ethel Austin, the troubled Merseyside discount fashion retailer which she bought out of administration on Tuesday.

News of McPherson's buying spree came at the same time as her former chain MK One, the retailer she founded with Arcadia billionaire Philip Green and fellow director David Thompson, was put into administration putting 2,500 jobs at risk.

A spokesman for McPherson yesterday denied she planned to bid for the MK One group.

And McPherson said yesterday she has no plans to merge the 46 Au Naturale stores with the 260 strong Ethel Austin chain,although she does plan to put some of the same stock in both stores.

McPherson said: "I'm obviously delighted to have acquired 46 Au Naturale stores from the administrators PwC and to be able to preserve some 550 jobs including those at the headquarters of Au Naturale in Glasgow.

"Au Naturale was a very profitable business and has fantastic potential. I'm preparing a strategy to ensure that the business is once again a strong and successful retail brand."

She added: "There's a great team at the head office and throughout the stores who understand that there is great potential for fashionable homewares at really keen prices.

"I can confirm that I have no plans to merge Au Naturale with Ethel Austin to form a single clothing and homewares chain. But Ethel Austin formerly sold homewares as part of its range so I'm actively exploring putting fresh product lines from Au Naturale into Ethel Austin outlets."

Earlier in the week, McPherson, along with business partner Thompson, bought Ethel Austin after owners Credit Suisse, Eos and ABN Amro put the group into administration.

McPherson, who had emerged as a possible suitor for the business before it was put into administration in April, called in the debt she had bought previously for an estimated 14 million. Around 260 outlets were rescued, although 33 stores were closed and 450 jobs lost.

McPherson and Thompson shared a 40m windfall when Icelandic group Baugur bought the 176 MK One stores in 2004.

McPherson got her start in retail as a buyer for Glasgow discount fashion chain What Everyone Wants.