Fears for jobs as clothes firm goes into administration

UP TO 35 jobs could be lost at a Paignton store following the announcement its parent company has gone into administration.

Uncertainty surrounds the future of discount retailer Ethel Austin, which has a store (pictured below) in Paignton's Victoria Square.

The Paignton shop remained open yesterday after Manchester and London-based administrators MCR were appointed to try to find someone to buy the value clothing retailer and its sister company Au Naturale Ltd.

The administrators say the Bay store has 35 staff and their jobs now hang in the balance as they attempt to secure the Liverpool-based company's future. It employs more than 3,700 people across the country.

Staff at the Paignton store were remaining tight-lipped yesterday but one said: "We're not closing as far as I know, but I have been told not to say anything."

Geoff Bouchier, who along with MCR partners, David Whitehouse and Philip Duffy, have been appointed to oversee the joint-administration, said yesterday there were 'no guarantees' buyers would be found in the current economic climate and he was unable to rule out closures and redundancies.

"There is no doubt in our mind the onset of the global economic crisis has hit the retail sector particularly hard.

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

"This has been compounded by poor trading conditions in January attributed to the adverse weather conditions, which severely restricted the companies' cash flow. They have continued to seek additional finance up until very recently but without success," added Mr Bouchier.

Ethel Austin was established 76 years ago and currently has 276 stores across the country.

Its headquarters in Knowsley employs 400 staff and is just 10 miles away from where the firm was established by the clothing firm's namesake.

Roundham and Hyde ward councillor Kevin Carroll said it was 'a sad day for Paignton' and any shop closing was 'a concern'.

He expressed his sympathy to people who may face job loses, adding: "If you look at the centre of Paignton there aren't many empty shops and we are at the mercy of the national chains.

"It is a sad loss because it is a well-used store and the prices are very competitive."

John Gorle, national officer for shop workers union Usdaw , said: "The announcement Ethel Austin has again gone into administration isn't a complete surprise as we were aware the company had some financial difficulties.

"We have already made contact with the company and the administrators with a view to working closely with them in an attempt to secure the employment of all staff.

"Today's announcement is terrible news for the loyal and hardworking staff who now face a period of uncertainty."