MORE than 1,800 jobs will be lost at Knowsley-based discount retail chain Ethel Austin, after administrators announced the closure of more than a third of its stores, its distribution centre and head office job cuts.

MCR, which was appointed administrator on Monday, said closing down sales will commence from today in 129 loss-making stores out of almost 270 operating under the Ethel Austin and Au Naturale brands. The stores marked for closure employ 1,384 people and the administrators said they will be able to announce final closure dates shortly.

This morning it named the stores, which include 16 in the Liverpool city region (see below for the list). Closure of the warehouse in Knowsley will cost 404 jobs and 65 head office staff were yesterday made redundant.

Staff told of the cuts yesterday were devastated, although MCR has pledged to honour all unpaid wages up until Monday’s administration.

MCR partner and joint administrator Philip Duffy said he does not anticipate any further closure announcements, although stores will be shut down as stock runs out.

Mr Duffy, who conducted the previous administration of Ethel Austin in May, 2008, told LDP Business: “We hope not to have to do any more closures. In all my years of doing this, announcing closures and then more closures doesn’t work. It is unfair on employees.”

He also revealed strong interest from prospective buyers: “We have received a lot of calls to date from various parties.

“It is pretty similar to last time, but this time there seems to be more private equity callers.

“But there’s no guarantees – it is a difficult market out there.”

He also held out hope that stores now facing closure could re-open under a new owner: “There is nothing to say that some people might want those stores.”

One warehouse worker at yesterday’s announcement said: “Some people were crying. People were bewildered. It was horrible.”

John Gorle, Usdaw union national officer, said: “This is devastating news for our members.

“Usdaw will be doing everything we can to minimise the impact of these redundancies and help members through this difficult time.”

A spokesman for former owner, Elaine McPherson, said: “Ms McPherson deeply regrets any job losses.”

The Ethel Austin and Au Naturale stores marked for closure are:

Anfield
Bromborough
Cheshire Oaks
Formby
Garston
Liscard
Neston
Netherton
Ormskirk
Prenton
Southport
Tuebrook
Upton
Walton
Waterloo
Widnes