Fresh threat to jobs at Ethel Austin

Ethel Austin, which has its HQ in Liverpool and a network of nearly 300 stores, and its sister homewares chain Au Naturale appointed MCR as administrator after the business failed to turn around following its rescue from collapse in May 2008.

Hundreds of jobs now hang in the balance as MCR seeks to find a buyer.

The administrator said it could not rule out store closures and redundancies.

Ethel Austin, based at Knowsley, Merseyside, only 10 miles from where the business was founded by Ethel Austin and her husband George Austin in their Liverpool council house in 1934, was bought out of administration in 2008 by Elaine McPherson, the previous chief executive and joint owner of MK One.

She pledged to return Ethel Austin to its "former glory" with an overhaul of the stores and clothing range.

The move helped protect 2,500 jobs at the time, although more than 450 jobs and 33 stores were earlier axed by administrators.

But the group has come under pressure from rival budget chains such as Primark and Matalan.