Ethel Austin shopworkers face uncertain future

5:08pm Wednesday 16th April 2008

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By Peter Magill »

DOZENS of shop workers in East Lancashire face an uncertain future after a high street name announced it had gone into administration.

Staff working at Ethel Austin, in five stores across the area, have been told that the company has encountered "financial difficulties".

Administrators say they are confident that the Liverpool-based chain can be sold as a going concern.

But this afternoon administrators said that 33 stores would be closing.

East Lancashire stores in Northgate, Blackburn, Market Street, Darwen, the Pendle Rise centre in Nelson, Market Street, Colne, and Market Street, Chorley, were not affected.

The Ethel Austin group, which has 300 outlets nationwide, has seen Manchester-based Menzies Corporate Restructuring appointed to oversee the firm's future.

A spokesperson from Menzies Corporate Restructuring: "We can confirm that redundancies were made at 33 stores today and a further 181 redundancies were made at the company's head office in Knowsley. The stores will be closed over the course of the next three weeks.

"We will continue to focus our efforts on finding a suitable buyer for the business and are already talking to interested parties."

p>The firm, established in 1934, is the latest high street name to encounter problems this year, with Stationery Box closing stores and ccamera shop giants Jessops scaling back its operations.

The latest annual turnover for the company is in the region of £150 million and the company employs around 2,800 staff in its stores and the Knowsley-based headquarters in Liverpool.