Rescued fashion chain in administration

Life & Style Retail, which runs 91 stores across the UK, has appointed RSM Tenon as administrator after becoming the latest victim of high street headwinds that include a tightening in household budgets and the hike in VAT.

Joint administrator Simon Bonney said the stricken business will continue to trade for the immediate future while a buyer is sought.

However, some of the stores are expected to close in coming weeks, in line with the previous management's plans, he added.

RSM Tenon said it was not aware at this stage how many shops or employees north of the Border could be affected.

The move came amid unconfirmed reports that private equity interest in the business might emerge, holding out some prospect that at least some of the 1,068-strong workforce might retain their jobs.

Life & Style Retail, whose head office is in Altrincham, Greater Manchester, was formed from the remnants of the Ethel Austin fashion chain after it slid into administration in March 2010.

At that time McPherson, formerly chief executive of Ethel Austin, swooped to rescue part of the business for the second time in two years.

She bought nearly 100 of its stores from the administrators and gave it a new name, saving 1,183 jobs.

She also bought the assets of sister company Au Naturale, the homewares retailer.

She had performed a similar rescue when Ethel Austin had previously gone into administration in 2008, pledging at that time to restore the retailer's fortunes.

McPherson made her fortune selling the MK One fashion chain alongside Sir Philip Green in 2004. Ethel Austin, originally based in Knowsley, Merseyside, was formed in 1934 by Ethel and George Austin, from a council house in Liverpool.

The company, which at its zenith had 300 stores, came under pressure from budget retailers such as Primark and Matalan, a problem that Life & Style Retail has also faced.