Ethel Austin in administration for fourth time in four years

By DOMINIC JEFF
Published on 19/07/2012 00:00

RETAILER Ethel Austin collapsed into administration for the fourth time in as many years yesterday, putting hundreds of jobs at risk.

The firm, which was twice rescued by Scottish retail specialist Elaine McPherson as it struggled in the face of recession and fierce competition, had been trading in its present incarnation since it was bought by former Blackwells bookshop chain director Sue Townsend 11 months ago.

Founded in Liverpool in 1934, Ethel Austin employed 2,900 people and had 300 stores before the troubles first struck in 2008.

But with each administration and rescue, unprofitable shops were closed and it now has just 48 stores and 500 staff. It has four stores north of the Border.

Administrator Duff & Phelps said that, while further redundancies and store closures cannot be ruled out, it was keeping all the stores open while seeking a buyer.

Joint administrators Philip Duffy and Sarah Bell said they were “urgently” reviewing the company’s financial position. They noted that Ethel Austin, which also trades as Life & Style, had suffered a “marked downturn” amid the recession.

McPherson – a former chief executive at Ethel Austin and joint-owner of MK One – had pledged to breathe new life into the chain when she bought it in 2008 after it first became insolvent, but ended up placing it in administration again in 2010, only to buy some of its assets later that year.

Townsend also hoped to turn the retailer’s fortunes around by refocusing on its roots in the north-west of England after she bought it out of administration for £1.5 million in August 2011. But her company later refused to pay the full fee amid claims that the amount of stock held by the chain had been overstated.