Ethel Austin business fails again
THE Ethel Austin retail chain has been placed into administration for the fourth time in as many years, putting up to 500 jobs at risk.
Insolvency firm Duff & Phelps has today been appointed as administrators to Ashloch – the company run by former Blackwells director Sue Townsend, which bought the business and assets of the retail chain less than a year ago in a deal worth £1.5m.
The business has struggled since, however, and Townsend had recruited Begbies Traynor to advise on a sale of the business and assets of Ashloch.
The company had filed a notice of intention to appoint administrators, although distressed debt specialist GA Europe is understood to have purchased the company’s outstanding liabilities and appointed Duff & Phelps to handle the adminstration.
It has handled three of the four administrations which the Ethel Austin business has undergone during the past three years.
Joint administrator Philip Duffy told TheBusinessDesk.com that it was too early to assess what the long term future for the business will be.
“We have been appointed as administrators of Ashloch Ltd and we are currently working to assess whether it will be possible to sell the business as a going concern,” he said.
At the time Ms Townsend purchased the business last August, it traded from 62 stores although this is understood to have shrunk to around 50.
Ethel Austin was originally based in Liverpool, but former owner Elaine MacPherson moved the company’s headquarters from Knowsley to Altrincham after she renamed the company as Life & Style Retail.
