Ethel Austin Back in Administration

Fashion Retailer Ethel Austin has fallen back into Administration for the second time in as many years due to low funding and poor trading figures in January.

The company, which has more than 300 stores nationwide plans to continue trading whilst the administrators seek out a new buyer.  Administrators MCR have also not ruled out the possibility of closures or redundancies as they try and add some financial stability back into the company. 

MCR have also said that there can be ‘no guarantees’ that a buyer will be found due to the current economic climate making potential investors reluctant to commit, especially to a struggling company.

"There is no doubt in our mind that the onset of the global economic crisis has hit the retail sector particularly hard," said Geoff Bouchier from MCR.

"As a consequence of this the companies have struggled to secure funders which in turn has impacted their ability to generate sales revenue."

The sister company of Ethel Austin, Au Naturale have also entered administration, again with MCR appointed on the case.

Some positivity for the company can come from the last time it went into Administration, the company was bought in less than a month by the former head of market rival MK One.

Founded and based in Knowsley, Merseyside, Ethel Austin has been in business for more than 70 years.

Posted at 03:17PM Feb 08, 2010 by Kris Wigfield in Insolvency  |  Comments[0]