Ethel Austin slips into administration
Discount clothes retailer Ethel Austin has today been placed into administration with 3,700 jobs at risk as the company struggles to survive. Administrators took control of the company early today with the snowy weather over the festive period one of a number of factors which appeared to have pushed the company over the edge. While it is hoped that buyers will step forward to acquire the business as a going concern, with sister firm Au Naturale also in administration, it will be a big ask in the current economic climate.
The company has a history which goes back to 1934 and has been visible on the UK high street for many years. It is believed that the festive period brought various cash flow issues to the table which the company has been unable to rectify in the short term. In the end there was little option but to place the companies into administration and see whether trade buyers would step forward.
Today's news is a stark reminder that despite indications that the UK economy may well have turned up towards the end of 2009 there are still many hurdles and obstacles ahead. Ethel Austin has been an integral part of the UK high street for many years but unless a buyer steps forward in the short term it could disappear altogether.
Share this..
Related stories
Is there a sting in the tail for Cadbury investors?
Despite the fact that Cadbury directors have never hidden his disdain for American giant Kraft Foods and the unwelcome takeover bid which is now on the table, it is looking more and more likely that Kraft Foods could be the only serious bidder for one of the U.K.'s best-known companies. It is ironic that perhaps Cadbury directors will at some point need to sit across the table from their Kraft Foo...
Read MoreIs the government playing more political games over Cadbury?
The Business, Innovation and Skills Committee Inquiry into Company takeovers, mergers and acquisitions in the UK has caught the attention of the financial press this week. Specifically, Business minister Ian Lucas has confimed that the government could intervene if a proposed £10.5 billion acquisition of Cadbury was seen to break existing competition laws. Whether the government would have any h...
Read MoreIs confidence leaving European markets?
Over the last couple of weeks we have seen a gradual deterioration in confidence in European and worldwide stock markets amid concerns that the Greek sovereign debt crisis could bring down the European Union. As we have mentioned on numerous occasions, confidence is a major element of any investment market and without it there are problems. So is confidence leaving European markets? There is no...
Read MoreOil saga in the Falklands moves to UN
Despite the fact that the UK has held sovereignty over the Falkland Islands and its surrounding waters since the mid-1800s, Argentina is again attempting to stake a new claim for sovereignty of the islands and the surrounding waters. This comes at a time when a small band of UK oil explorers have moved into the region with experts predicting that billions of barrels of oil could be discovered unde...
Read MoreCar manufacturers introduce price hikes after rescue package
It has been revealed that Vauxhall and Ford are looking to increase the price of their new cars by as much as 5% after confirmation of the UK government's £2.3 billion liquidity package. Even though the £1.3 billion coming from the EU has yet to be cleared it appears as though UK car manufacturers have taken this opportunity to increase prices even though business levels have fallen to record lo...
Read More