MCR Statement on Ethel Austin and Au Naturale

MCR Statement on Ethel Austin and Au Naturale

Closing down sales at 129 retail outlets of value clothing retailer Ethel Austin and its sister company Au Naturale, have been announced by joint administrators Geoff Bouchier, Philip Duffy, and David Whitehouse of MCR.

"MCR is now conducting a parallel strategy. All stores are to enter into a sale campaign commencing tomorrow while we continue to seek a purchaser for the Companies businesses," stated Geoff Bouchier, Partner at MCR.

Specifically 129 of the Companies stores have been identified as loss making and as a consequence those stores will enter a closing down phase which will commence tomorrow. A rescue of these stores by a willing purchaser has not been ruled out.

The Distribution Centre, which was operating on a much reduced basis prior to the administration, is to cease remaining operations and as a consequence 404 of the Distribution Centre employees have been made redundant with effect from today.

The joint administrators have also undertaken a review of the head office function and consequently identified a further 65 positions which have become immediately redundant.

"The joint administrators have also been in regular dialogue with both the trade unions and local government authorities during this time to discuss the immediate prospects of the Companies and that of the employees," he added.

The joint administrators have today confirmed that all unpaid wages owing at the date of the administration will be paid via the administration in full in line with usual payment dates.

About MCR
MCR was formed in April 2001 to offer turnaround, restructuring and insolvency services of outstanding quality to banks, lenders, business owners and individuals in the mid-market sector. It aims to provide the most practicable ways to resolve issues affecting business performance.

The firm has 12 partners who practice an ethos of high-level involvement to ensure that each assignment capitalises upon the expertise and knowledge of the whole team.

MCR regularly handles significant projects across a range of sectors and has been involved in a number of high profile cases. MCR is increasingly being asked to restructure businesses and find turnaround solutions to help companies avoid formal insolvency. Sectors include retail, financial services, property, manufacturing, printing, recruitment, hotels, leisure, e-commerce, automotive, telecommunications, music, entertainment and construction.

For more information, www.mcr.uk.com


For further information, please contact:
Luke Derbyshire
Spreckley Partners Limited

T: 0207 388 9988
E: derbyshire@spreckley.co.uk