Ethel Austin announces job cuts
Following this week's news that clothing retailer Ether Austin went into administration, it has been announced that a total of 469 jobs are to go at both Ethel Austin and its sister firm, Au Naturale.
The jobs will go in Knowsley, Merseyside, where the head office and distribution depot are located.
The companies' administrator, MCR, said 129 stores would also close, with closing down sales at the affected stores due to begin on Thursday. The stores will close if a buyer for the retail group cannot be found.
The rest of the group's 300-strong network of stores will continue to trade normally while the administrator looks for a buyer.
The shopworkers' union, Usdaw, said that remaining staff now faced a period of uncertainty about their future."This is devastating news for our members, many of whom are long-serving, loyal employees," said John Gorle from Usdaw.
"We will be working hard with the administrators to salvage what is left," he added.
Ethel Austin went into administration for the second time in as many years earlier this week.
Together with Au Naturale, the chains employ more than 3,700 people.
Posted at 07:52PM Feb 10, 2010 by Kelly Board in UK Economy News | Comments[0]
D-Day for Pompey Delayed
Portsmouth FC has been given more time by the court to prove that they are still solvent.
After the court hearing this morning, the club have been given a seven day stay of execution in order to continue negotiations. They must prove their solvency by producing a ‘statement of financial affairs’ by 4 PM on 17 February 2010. The date for the next hearing is yet to be set, however the earliest possible date is 19 February.
Representatives of the club told the court that they have had two bids to buy the club that they referred to as ‘serious offers.’ Therefore if one of these two deals goes through before this date and the club can get some kind of cash injection, they ay still have a fighting chance of avoiding the winding up order and ultimately avoiding administration.
As it stands, Portsmouth look destined to become the first ever top flight club to enter formal insolvency proceedings. It is reported that their debts total around £60million, however the actual petition that has been issued regards £7.4million that the club owes in unpaid VAT. It is also thought that HMRC are owed more money in National Insurance and PAYE, though they have actually petitioned for this amount.
It is also a possibility that further legal action may be pursued dependant on the results of their ‘statement of affairs.’ Trading whilst in knowledge that the company are insolvent is a criminal offence.
Court Registrar Christine Derrett has released a statement saying,
“I am very concerned about the financial status of this company," she said. "It seems to me there's a very real risk that this company is undoubtedly trading while it is insolvent.
"I'm obviously conscious that, by making a winding-up order, it would have very severe consequences not only for the company as a business but for the supporters themselves, but that's not a consideration that I strictly take into account."
Meanwhile, Gregory Mitchell QC, who represented HMRC at court has said,
“It's quite clear, beyond any doubt at all, that this company is insolvent.
"They have failed to provide any evidence at all as to their solvency. There are many debts and they are unpaid."
Club representative Nigel Hood also spoke at court about new owner Balram Chainrai’s intentions, it has been made clear he does not want long term ownership, however hood has said that he plans to run the club until it reaches financial stability and then sell it on to someone who will ‘operate the business as a football club.’
Mr Hood also added that forcing the club out of business may have ‘very serious consequences.’
"There would be irreparable harm caused not only to the suppliers but to the employees, 600 staff, suppliers, people who have paid in advance for their season tickets would lose their money."
Whenever the next court date is set, it will without doubt be one of the most important days in the clubs history, and also possibly the date they cease to exist.
Posted at 03:44PM Feb 10, 2010 by Marc Stenton in Insolvency | Comments[0]
