Fri, 13 Jul 2012 | ADMINISTRATION
Retailer Ethel Austin is up for sale less than a year after it was taken over by Ashloch Limited.
Ashloch, which is run by London business woman Sue Townsend, issued a notice to appoint Begbies Traynor as administrators for the firm.
However, they have insisted that Ashloch is not in administration, but that the firm has been instructed to “market the business and assets of Ethel Austin for sale”.
“The Ethel Austin brand, which was established in Liverpool in 1934, was bought from administration by entrepreneur Sue Townsend's Ashloch company in August 2011,” Begbies Traynor noted in a statement.
Gary Lee, partner at the administrators, added: “It is important to note that the company is continuing under the control of the directors and management – it is not in administration.”
Stock has recently been removed from at least one Ethel Austin store, while others have seen rent negotiations with landlords break down.
It is thought that Ashloch's problems with Ethel Austin have developed from a stock 'black hole'. When the company originally purchased the retailer its new owners discovered that the amount of stock held by Ethel Austin had been overstated by £5.5 million, which lead to the £1.5 million purchase price being renegotiated.
Ethel Austin has entered administration several times over the past three years as each new owner struggles to find the right approach to the business.
Operating across North Yorkshire, the company has two divisions, one that provides IT infrastructure and one offering renewable energy solutions, including solar PV systems and electric vehicle charging points.
The group specialises in supplying and installing UPVC windows, doors and conservatories in a wide array of styles. Bespoke bathroom panelling and high-quality guttering products are also provided by the two companies.
The company is a well-regarded specialist provider of hygienic wall, floor, and ceiling cladding systems. To complement its core supply of PVC cladding, the business offers hot welded joints to prevent the build-up of bacteria and can supply stainles...
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.