DOZENS of jobs across the region are hanging in the balance after clothing chain Ethel Austin fell into administration for the second time in less than two years.

Corporate restructuring specialists MCR said the branches would continue to trade while they attempted to sell them as a going concern.

But the firm's administrators warned they could not rule out store closures and redundancies.

The discount retailer has branches in Stoke, Tunstall, Newcastle, Market Drayton, Stafford, Stone, Crewe, Nantwich and Sandbach.

And sister chain Au Naturale, which has a store in Congleton, is also in administration.

Ethel Austin, which was founded in Liverpool in 1934, last fell into administration in April, 2008.

It was bought out by former MK One chief executive Elaine McPherson, who then also bought homeware chain Au Naturale shortly afterwards.

Together the retailers have about 300 branches across the country and employ more than 3,700 people.

Geoff Bouchier, partner at Manchester-based MCR, has been appointed administrator along with colleagues David Whitehouse and Philip Duffy.

He said: "The joint administrators are trading the companies in administration in the short-term with a view to finding a purchaser for the businesses as a going concern.

"In the current economic climate there are no guarantees that purchasers will be found.

"We are reviewing the financial position of the companies and are at this stage unable to rule out store closures and redundancies."

Mr Bouchier said the administration was brought on by the firms' failure to secure funding, which was exacerbated by poor trading conditions in January.

He added: "There is no doubt in our minds that the onset of the global economic crisis has hit the retail sector particularly hard.

"This has been compounded by poor trading conditions in January attributed to the adverse weather conditions, which severely restricted the companies' cash flow.

"The companies have continued to seek additional finance up until very recently, but without success."

John Gorle, national officer at shop workers' union Usdaw, which has 700 members working at Ethel Austin, said: "The announcement that Ethel Austin has again gone into administration isn't a complete surprise as we were aware that the company had some financial difficulties.

"We have already made contact with the company and the administrators with a view to working closely with them in an attempt to secure the employment of all staff."

Tunstall Chamber of Trade chairman Brenden Fern, below left, was disappointed to hear another chain had gone into administration.

He added: "I hope it doesn't go the same way as Woolworths, which has left a big hole in quite a few high streets.

Derek Aylett, who opened Sarah Jane Traditional Sweets in Sandbach's High Street in November, said Ethel Austin going into administration is "bad news" for the area.

He added: "Let's hope either Ethel Austin is taken over by another company, or the empty shop gets filled quickly."

"Business was slow in January because of the bad weather, but it seems to be picking up a bit now."