Thousands of jobs at risk as Ethel Austin collapses

Apr 16 2008 by Bill Gleeson, Liverpool Daily Post

STAFF at Ethel Austin’s  company headquarters at  Knowsley Business Park were  stunned yesterday to be told the  firm was going into  administration.

Shift workers were called into  a meeting to be told the news.  Some casual staff were told  almost straightaway there would  be no more work for them and  not to report back today.

However, the majority of work- ers will not know until today  whether their jobs are safe.

A total of around 500 people  are believed to work at the  Knowsley site, which is used  mainly as a distribution centre  and employs drivers, packers  and others who dispatch clothes  to stores. Head office staff are  also based at the centre.

As he left the premises last  night, warehouse assistant Paul  Stewart, 29, from St Helens, said:  “I’ve just moved house and my  partner is also pregnant, so this  is a real blow.

“We were told when we  arrived for work that the  business had gone into  administration, but we won’t  find out until tomorrow whether  we’ve got jobs or not.

“Quite a lot have left already.  No one knows what’s going on.”

Another employee, Keith  Cooper, from West Derby, who  has worked at the site for 30  years, said: “We’ve been told as  many as 20% of the stores will  be closed.

“To be honest, this has been in  the pipeline for years, but it’s  still a shock.

“The morale in there is  terrible, really low.”  Shopworkers' union Usdaw,  which has 600 members among  the firm's UK staff, said the  announcement was not a total  surprise.

John Gorle, Usdaw National  Officer, said: "We've been aware  for some time of the financial  difficulties of the business.

"We will now be working  closely with Ethel Austin and  administrators in an attempt to  secure the employment of as  many members as possible."

Features editor Emma Johnson on where Ethel Austin went wrong > > >