Jobs under threat as retailer sinks into administration

Published on Monday 8 February 2010 21:40

HIGH street retailer Au Naturale has gone into administration, along with its sister firm, Ethel Austin, raising a question mark over the future of 3,700 workers.

Administrators said they could not rule out store closures and redundancies at either retailer.

It is the second time in as many years that the brands have faced collapse.

Ethel Austin, which has about 300 stores, was bought out of administration in May 2008 by Scottish retail specialist Elaine McPherson, previously chief executive and joint owner of MK One.

Shortly after, she emerged as the buyer of 46 Au Naturale stores, almost all of them in Scotland. There were 159 Au Naturale outlets, before the Glasgow-based retailer was put into administration earlier in the year.

Ms McPherson pledged to return Ethel Austin to its "former glory" with an overhaul of the stores and clothing range. But the group has come under pressure from rivals, such as Primark and Matalan, while the economic crisis affected its financing plans.

Administrators MCR said recent funding woes were compounded by bad weather during the key January sales period.

Mr Bouchier said Ethel Austin would trade as normal while a buyer was sought, but "there are no guarantees" it could be sold.

The Usdaw union, which represents some of the staff at Ethel Austin, said the news was a "terrible blow". National officer John Gorle said: "We have already made contact with the company and the administrators with a view to working closely with them in an attempt to secure the employment of all staff.

"The announcement is terrible news for the loyal and hard-working staff, who now face a period of uncertainty surrounding their future."