Comment: Ethel Austin - A grim reminder of tough times

Apr 16 2008 Liverpool Daily Post

AS IF to prove that no company or institution is immune from the financial crisis currently afflicting the retail sector, comes news that well- established Merseyside-based discount clothing chain, Ethel Austin, has been placed in administration.

This will place a huge cloud over the future of the business, which employs around 2,800 staff throughout its 300 UK stores and the company’s headquarters in Knowsley.

The outlook seemed rosy for the retailer after the recent completion of a financial restructuring plan. It is also, it should not be forgotten, the official uniforms supplier for volunteers at this year’s Capital of Culture events.

But, despite the latest annual turnover for the company being in the region of £150m, it has still not been enough to stave off financial difficulties.

Some glimmer of reassurance is offered by the fact that administrator Menzies Corporate Restructuring said it hopes to find a buyer for the firm, founded in 1934, to ensure the business continues to trade.

The administrators say that Ethel Austin has a good brand and good customer base and this, together with its national coverage, should make it attractive to potential buyers.

It is sometimes easy to overlook the human dimension in business stories such as this, as it affects many people with mortgages to keep up, families to provide for, and financial commitments to meet.

That is why it is important that the retail chain is put on a sound financial footing as soon as possible, to provide some security for its large workforce.

But it would also be a great pity to lose such an historic name, which had its humble beginnings as a wool shop in Liverpool, although the company has long since severed any ties with the family whose name they still bear.

It is, in addition, a sobering reminder that conditions on the high street are as tough as they have ever been and that no-one, whether they are Northern Rock or Ethel Austin, is safe.