HUNDREDS of Ethel Austin staff are in limbo today, fearing redundancy when they return to work tomorrow.

The Knowsley-based group, which employs about 2,500 staff, was placed into administration yesterday for the second time in less than two years.

Its 300-strong stores are trading as normal, but about 300 warehouse staff in Kirkby were sent home and told to return for a mid-day meeting tomorrow. Some staff left in tears.

One worker, who asked to remain anonymous, said: “We think we will be handed our redundancy envelopes.”

He said the administrators have promised to pay staff from yesterday to Wednesday, but added it is unclear whether Ethel Austin can pay their wages for working last week.

Geoff Bouchier, David Whitehouse and Philip Duffy, partners at insolvency specialist MCR, have been appointed as joint administrators of Ethel Austin and Au Naturale, which were rescued from administration by current owner Elaine McPherson in 2008.

Mr Bouchier said they are trading both companies with the aim of finding a buyer for them as a going concern, but added: “In the current economic climate, there are no guarantees that purchasers will be found.”

He said they were unable to rule out store closures and redundancies.

Administrators blamed the credit crunch which restricted funding opportunities, and claimed the recent bad weather had affected trading.