Job fears in stores axe

Apr 18 2008 Evening Gazette

SEVENTEEN Teesside-based employees face an uncertain future today after administrators for troubled budget clothes chain Ethel Austin announced that its Middlesbrough and Hartlepool stores are to close.

The firm remained tight-lipped over plans for staff at these and 31 other outlets, which are to shut after the firm fell into financial difficulties.

Joint administrators Menzies Corporate Restructuring could not confirm whether the Tees-based staff would have the option of transferring to another of Ethel Austin’s 300 outlets. It said the 33 stores could close within one month but remained “confident” that a suitable buyer would be found for the remainder.

Partner Philip Duffy said: “Our primary concern is to ensure that the business continues to trade in the coming weeks and that a suitable buyer is found. Ethel Austin has a good brand and good customer base and this, together with its national coverage, should make it an attractive opportunity for a retailer.”

John Gorle, national officer for Usdaw (Union of Shop, Distributive and Allied Workers), said the union was seeking urgent talks with the administrators to work out the best way to support staff “in this difficult situation”.

A total of 181 jobs are set to go at Ethel Austin’s head office and distribution centre in Knowsley, Merseyside. Established in 1934, the company has a turnover of £150m and employs around 2,800 staff.