ETHEL AUSTIN collapsed with debts of more than £43m, the Daily Post can reveal.

Its suppliers are owed more than £27.6m and HM Revenue & Customs (HMRC) is owed £7.68m.

Part of the debt is believed to relate to unpaid National Insurance contributions for employees of the Knowsley-based firm.

Those outstanding moneys to the taxman could explain why some former workers at the company are claiming problems in receiving Job Seekers Allowance payments.

A creditors’ report prepared by Manchester-based administrator MCR reveals the scale of the company’s second collapse in as many years.

Former owner Elaine McPherson, who first bought the business from administrators in May, 2008 – and who last week bought it back – placed the firm into administration on February 8 this year, after receiving a winding-up order from Aurelia Properties over unpaid rents.

But the company’s problems first became apparent in June last year.

Cash flow difficulties caused by poor trading meant the firm, established by Anfield housewife Ethel Austin in 1934, was unable to pay £7.2m in PAYE and VAT to HMRC.

MCR was appointed as a consultant to negotiate with HMRC, but trading failed to improve and, in November, 2009, Elaine McPherson injected £5.6m into the company.

HMRC agreed to a three-month “stay of execution” to allow time for directors to improve the firm’s financial position.

But January’s harsh weather dealt a hammer blow to Ethel Austin’s fortunes as shoppers stayed at home, meaning the store chain missed its monthly sales forecasts by £5m.

The administrator’s report showed the winding-up order was the “nail in the coffin”, leading to the decision to go into administration.

Almost 2,300 staff at Ethel’s head offices, warehouse and stores around the country lost their jobs.

And now union leaders are calling for an investigation after some claimed they were refused benefits payments because their National Insurance had not been paid.

One former worker, who asked not to be identified, said: “I went to the Job Centre but was refused my allowance because my National Insurance wasn’t paid. I know others who have had the same problem.”