McPherson loses £4.3m court battle
ELAINE McPherson, the businesswoman who tried to revive the Ethel Austin brand, has lost a High Court battle against India’s state-owned Bank of Baroda.
The bank was a secured creditor, with an exposure of £4.3m, of Mrs McPherson’s Altrincham-based Life & Style Retail which bought assets of the Liverpool chain when it fell into administration in 2010.
A year later the bank, which had supplied the cash for working capital, called in administrators from RSM Tenon. It has since pursued Mrs McPherson through the courts.
Following the judgement, Mrs McPherson must pay back the £4.3m, plus costs of around £60,000. Her lawyer, Nigel Frost of Jeffrey Green Russell in London, said she was now considering an appeal.
He added: “She has done nothing wrong. All she has done is try and employ a large number of people in the North West and is dealing with the situation as best she can.”
Sunil Mohindra, a senior partner at Manchester-based Mohindra Maini Solicitors which acted for the bank, said: “Mrs McPherson fought the case all the way and we are pleased that our client has obtained a judgement which it will now seek to enforce.”
The Ethel Austin brand, which was established in Liverpool in 1934, was first bought out of administration by Mrs McPherson in 2008. Despite insolvencies in 2010 and 2011 the brand lived on when Ashloch Ltd, a business run by entrepreneur Sue Townsend, bought the assets.
However, this business failed after 10 months but the name and some shops were picked up by Mike Basso’s Ricli Ltd. This revival was also shortlived, and administrators were called in earlier this month leading to 200 job losses.
