MCR appointed as administrators at Ethel Austin

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Ethel Austin and Au Naturale retail outlet

11:33 am, February 8, 2010
MCR appointed as administrators at Ethel Austin

By Michael Fahy

The Manchester office of insolvency firm MCR has been appointed as administrators to retail chains Ethel Austin and Au Naturale Ltd.

Phil Duffy, David Whitehouse and Geoff Bouchier have today been announced as joint administrators of the firm, which was bought out of a previous administration by Elaine Macpherson in May 2008. The Knowsley-based firm was originally set up more than 70 years ago and has stores across the country.

“The Joint Administrators are trading the Companies in Administration in the short term with a view to finding a purchaser for the businesses as a going concern,” said Bouchier. “In the current economic climate there are no guarantees that purchasers will be found. We are reviewing the financial position of the companies and are at this stage, unable to rule out store closures and redundancies.”

Bouchier blamed economic conditions and an inability to secure new funding for the firm's collapse.

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

John Gorle, Usdaw national officer, said: “The announcement that Ethel Austin has again gone into administration isn't a complete surprise as we were aware that 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 surrounding their future."

COMMENTS? mfahy@crain.com