Ethel Austin goes into administration

NO Guarantees have been offered to staff who work at Ethel Austin's in Scunthorpe and Ashby - after the company went into administration for the second time in two years.

Staff at the two local stores opened up for business as usual today despite the news.

The company is the latest business to be hit by the recession with 3,714 jobs across the country at risk.

The chain, which has 300 stores nationwide, including one in the Foundry in Scunthorpe and one on Ashby High Street, will continue trading as normal while a new buyer is sought.

Administrators MCR said it could not rule out closures or redundancies as there were 'no guarantees' that a buyer could be found in the current economic climate.

Geoff Bouchier, from MCR, said: "There is no doubt in our mind that the onset of the global economic crisis has hit the retail sector particularly hard.

"As a consequence of this, the company has struggled to secure funders which in turn has impacted on their ability to generate sales revenue."

Ethel Austin's sister firm, homeware retailer Au Naturale, has also gone into administration.

For the full story, buy tomorrow's Scunthorpe Telegraph.