Jobs go and stores shut as Ethel Austin rescue fails

Life & Style Retail, which ran 91 stores across the UK, has made 440 staff redundant since they entered administration on June 10, a spokesman for the shopworkers’ union Usdaw said.

A total of 34 stores have closed, he said.

A spokesman for the union said the administrators RSM Tenon have told them they remain in talks with at least one party interested in buying the remainder of the business.

Usdaw national officer John Gorle said: “We have been urging the administrators to keep all stores open while a buyer is sought but once again stores have been closed and more loyal staff made redundant with barely any notice and absolutely no consultation with their union.

“We will be in contact with all members made redundant this week to offer them our advice, support and representation through this very difficult time and again will be taking all necessary legal steps to protect their interests.”

Simon Bonney, joint administrator, said: “Regretfully, to ensure the long-term future of the overall business we have had no alternative but to close further stores.”

The latest stores to close were in Ashington, Bangor, the Kennedy Centre in Belfast, Fort William, Gravesend, Great Yarmouth, Johnstone, Leven, Livingstone, Orpington, Reading and Watford, the union said.

The company based in Altrincham, Greater Manchester, was formed from the remnants of the Ethel Austin fashion chain, which collapsed in March 2010.

Elaine McPherson, formerly the chief executive of Ethel Austin, bought nearly 100 of its stores from administrators and gave it a new name, saving 1,183 jobs.

She also bought the assets of sister company, homewares retailer Au Naturale.

It was the second time she had done so after Ethel Austin previously went into administration in 2008 and she pledged to return the chain to its former glory.

Ms McPherson made her fortune selling the MK One fashion chain alongside Philip Green in 2004.

Ethel Austin, which was originally based in Knowsley, Merseyside, was formed in 1934 by Ethel and George Austin from a council house in Liverpool.

The company, which at one stage ran some 300 stores, came under pressure from budget retailers such as Primark and Matalan.