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1,048 jobs to go at Ethel Austin - 24/02/2010

Administrators at Ethel Austin, the cash-strapped retail chain, have today announced 1,048 jobs are to be axed.

MCR has announced the imminent closure of 114 stores, following a statement earlier this month that 129 retail outlets were to begin closing down sales. It said that most of the stores will cease trading by the end of February.

Geoff Bouchier, (pictured) joint administrator and partner of 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."

The remaining 162 stores will continue to operate as usual while a purchaser for the rest of the businesses as a going concern is sought.

"We are still hopeful of selling the remaining business and discussions are ongoing with a number of interested parties. The dealings relating to the closure stores will not effect the operations of the continuing stores," added Bouchier.

Ethel Austin collapsed into administration at the beginning of February, just two years after being rescued for a reported £10m.

The clothing chain, which was founded by Ethel Austin herself in her living-room in Liverpool in 1934, was bought out of administration in 2008 by MK One boss Elaine McPherson.

McPherson promised to revive the firm as a value fashion force, but the recent slump in consumer confidence has brought the business to its knees.

Bouchier said that poor trading during January had severely restricted the company’s cash flow and that the failure to secure additional finance had impacted the group.

The clothing retailer’s collapse follows the demise of other high street stores including Zavvi, Woolworths, furniture groupMFI, off-licence chain First Quench and bookstore Borders UK.