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| Version 3 | Version 4 |
|---|---|
| Administration for Ethel Austin | Administration for Ethel Austin |
| (about 2 hours later) | |
| Clothing retailer Ethel Austin has gone into administration for the second time in two years. | Clothing retailer Ethel Austin has gone into administration for the second time in two years. |
| The group's 276 stores will continue trading as normal while a new buyer is sought, administrators MCR said. | The group's 276 stores will continue trading as normal while a new buyer is sought, administrators MCR said. |
| But MCR said it could not rule out closures or redundancies as there were "no guarantees" that a buyer could be found in the current economic climate. | But MCR said it could not rule out closures or redundancies as there were "no guarantees" that a buyer could be found in the current economic climate. |
| Administrators blamed the move on failure to secure funding, compounded by poor trading in January. | Administrators blamed the move on failure to secure funding, compounded by poor trading in January. |
| Ethel Austin's sister company, homeware retailer Au Naturale, has also gone into administration. | Ethel Austin's sister company, homeware retailer Au Naturale, has also gone into administration. |
| ADMINISTRATION TALES Nov 2008: Woolworths (all 815 branches closed and 30,000 jobs lost)Nov 2008: MFI (110 stores closed and 1,000 jobs lost)Dec 2008: Zavvi (ceased trading - 446 jobs lost but 637 saved after some stores sold to HMV and Head Entertainment) Dec 2008: USC (43 out of 58 stores and 1,100 jobs saved. 300 jobs lost)Dec 2008: Whittards of Chelsea (Still trading after sold to private equity firm) | |
| Together, the two companies have 276 stores and employ more than 3,700 people. In the past year, Ethel Austin has taken over 12 empty shops formerly occupied by Woolworths - the biggest retail casualty of the recession. | Together, the two companies have 276 stores and employ more than 3,700 people. In the past year, Ethel Austin has taken over 12 empty shops formerly occupied by Woolworths - the biggest retail casualty of the recession. |
| "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. | "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." | "As a consequence of this the companies have struggled to secure funders which in turn has impacted their ability to generate sales revenue." |
| Customers | |
| Unusually, MCR said customers would still be able to redeem gift vouchers purchased before 8 February, but only to pay for up to half of any transaction. | |
| Usually when a company goes into administration, those with gift cards are deemed to be unsecured creditors and have to try and claim their money back from the administrators. | |
| Customers will still be able to exchange unwanted goods bought within the last 28 days, but no refunds will be given, MCR said. | |
| Those who have bought goods but not yet received them will need to put in a claim as an unsecured creditor. Those who paid by credit or visa debit cards may be able to get their money back from their card issuer. | |
| 'Uncertain future' | 'Uncertain future' |
| The Union of Shop, Distributive and Allied Workers (Usdaw) said it was already working with the administrators to secure staff employment. | |
| "Today's announcement is terrible news for the loyal and hard-working staff who now face a period of uncertainty surrounding their future," said John Gorle, Usdaw national officer. | "Today's announcement is terrible news for the loyal and hard-working staff who now face a period of uncertainty surrounding their future," said John Gorle, Usdaw national officer. |
| Despite the fact the recession is now over in the UK, analysts say the outlook for the retail sector remains bleak. | Despite the fact the recession is now over in the UK, analysts say the outlook for the retail sector remains bleak. |
| "2010 will be tough. The only consensus is that no-one knows what will happen," said Mark Hudson at PricewaterhouseCoopers. | "2010 will be tough. The only consensus is that no-one knows what will happen," said Mark Hudson at PricewaterhouseCoopers. |
| "However, most think it will not be pretty, with risk on the downside. Retailers we've spoken to have all said the same - performance will be slow but steady until summer, then all bets are off until the first budget post the election." | "However, most think it will not be pretty, with risk on the downside. Retailers we've spoken to have all said the same - performance will be slow but steady until summer, then all bets are off until the first budget post the election." |
| Ethel Austin started more than 75 years ago in Liverpool. Its head office is in Knowsley, Merseyside, where it employs 401 staff. | Ethel Austin started more than 75 years ago in Liverpool. Its head office is in Knowsley, Merseyside, where it employs 401 staff. |
| The company first went into administration in 2008, but was bought within a month by the former head of retailer MK One. | The company first went into administration in 2008, but was bought within a month by the former head of retailer MK One. |