FORMER Ethel Austin owner Elaine McPherson is considering whether or not to bid for the discount clothes retailer now in administration.

And it emerged the parent company put the business into administration after a petition to wind-up the Knowsley firm was lodged by construction firm Aurelia Properties last week.

A spokesman for administrator MCR said: “There was a winding- up petition, and as a result the parent company and secured charge holder ACLM Holdings Ltd placed Ethel Austin Ltd into administration in order to protect its investment.”

A spokesman for Ms McPherson said it was “too early to say whether she will bid for the company”.

He said she has personally put “millions” into the firm which she bought from administrators in May, 2008.

He said she saw the inability to gain normal banking facilities as the main reason for its failure.

“British banks have been under strain and over the past 18 months have run out of cash themselves.”

Up to 300 staff at the Knowsley warehouse will learn their fate at a mid-day meeting with the administrators today. Many fear redundancy.