Ethel Austin left debts of £55m
RETAILER Ethel Austin failed with liabilities of £55m, according to recently filed documents.
The Knowsley-based business was put into administration by its parent company, along with a sister operation Au Naturale, in February after a landlord issued a winding up petition.
The insolvency cost more than 2,000 jobs as 200 out of 300 stores in the group were closed down.
Around 1,000 jobs were saved when former owner Elaine McPherson bought back around 90 shops from administrators in March through a new company called Life & Style Retail.
A creditors’ report filed in April did not include a statement of affairs detailing Ethel Austin’s liabilities because, said administrators at MCR, the “inter-company position had not yet been reconciled”.
That document has now been filed at Companies House. It shows trade creditors – including those who supplied both Ethel Austin and Au Naturale – were left with unpaid bills totalling £33.2m. HM Revenue & Customs was owed £7.5m while the parent company ACLM was owed £13.5m.
In a summary of assets, stock with a book value of £17.7m fetched £2.3m while equipment and fittings valued at £4.4m was sold for £50,000. Just £4.1m was raised from asset disposals to offset against debts of £59.2m. The document does not show how much Elaine McPherson paid for company assets but it is believed to be around £1.25m.
