Logistics firms hit by Ethel Austin failure
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A NUMBER OF transportrelated firms have been listed as trade creditors of home and fashion retailer Ethel Austin, which went into administration with liabilities of £55.1m. A total of £33.2m is owed to nearly 500 trade creditors.
The Knowsley-based company and its sister homeware chain Au Naturale entered administration on 8 February, when administrator MCR announced the closure of 129 stores ( CM 18 February 2010). The retailer held an 0-licence for 46 vehicles and 21 trailers. A total of 404 HGV drivers and warehouse staff were made redundant.
The latest statement of affairs reveals that a number of subcontractors have also been hit by the insolvency. Northern Irish haulier MMK International has been left with an unpaid bill of £5,059,90. Wigan company NOV Fleet Cleaning Services is owed £13,850.50. Vehicle bodybuilder Foster's Commercials is also listed as beingowed £3,542.
Former Ethel Austin owner, Elaine McPherson bought back 90 of the 300 stores from the administrators in March for a new company called Life & Style Retail.
Crewe-based Prima Distribution had been delivering to remaining stores since Ethal Austin entered administration and told CM it would bid for a logistics contract if the company re-emerged from administration. The fashion logistics specialist has been operating a 15-strong fleet for the remaining 162 Ethel Austin and Au Naturale stores, although 81 of those ceased trading at the end of March.
A spokeswoman for Prima Distribution was not able to comment on the status of the contract.