Ethel Austin to shut 114 stores

UK: Ethel Austin to shut 114 stores

By just-style.com | 25 February 2010

Administrators have decided to shut 114 Ethel Austin stores

Administrators handling the sale of value clothing chain Ethel Austin say some 114 stores are slated for "imminent closure," resulting in the loss of 1,048 jobs.

News that 114 stores will shut in days follows the decision earlier this month to start closing-down sales at 129 Ethel Austin stores and its sister chain Au Naturale.

The remaining 162 shops will continue to operate while a purchaser is sought.

"We are still hopeful of selling the remaining business and discussions are ongoing with a number of interested parties, said MCR joint administrator and partner Geoff Bouchier.

"The dealings relating to the closure stores will not affect the operations of the continuing stores."

"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."

Previous reports had indicated private equity group Endless could consider making a bid, although no further details were available.

Ethel Austin operated a nationwide network of nearly 300 stores in the UK. It is the second time the retailer has collapsed in the past 18 months.

In 2008, former MK One chief executive Elaine McPherson rescued the company out of administration.

Calls to MCR and Endless were not returned.

Sectors: Apparel, Finance, Retail